At the beginning of the current reporting period (1 July 2019 30 June 2020) Winterhall Ltd has 600,000 ordinary shares on issue. The company announced a one for three (one share for every three shares held) rights issue on 31 December 2019. The exercise price is $3.70 and the last date to exercise the rights is 1 March 2020. The market price of one share immediately before exercise on 1 March 2020 was $4.70.

Required:Determine the theoretical ex-rights value per share (keep two decimal places and show all your workings).