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Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subscription price of $10.

Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subscription price of $10. One new share can be purchased for every three shares held. The company currently has outstanding 150,000 shares priced at $70 a share. Assuming that the new money is invested to earn a fair return, give values for the following:

1. Number of new shares

2. Amount of new investmennt

3. Total value of company after issue

4. Total number of shares after issue

5. Share price after issue

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