a) Describe the purpose and process of a rights issue (2 marks) b) A company conducted a one-for-five renounceable rights issue at a subscription price of $35 when its cum-rights price was $43.50. (i) Calculate the theoretical value of the rights and the ex-rights price (2 marks) (ii) Calculate the amount raised by the company assuming it had 50 million issued shares prior to the rights issue, the process was a success and it paid fees of 6% to the investment bank that arranged the rights issue. (2 marks)