(a) Arkwright Holdings Plc has 20 million ordinary shares of 0.50 in issue. These shares are currently valued on the stock exchange at 1.60 per share. The directors have decided to make a one-for-four issue (that is, one new share for every four shares held) at 1.30 per share. Required: Calculate the theoretical ex-rights price. (25 marks) And (b) An investor with 2,000 shares in Arkwright Holdings plc has contacted you for investment advice. She is undecided whether to take up the rights issue, sell the rights or allow the rights offer to lapse. (75 marks) Required: Calculate the effect on the net wealth of the investor of each of the options being considered