August Ltd is a New Zealand based company listed on the NZX with 200 million shares currently trading at $5.00 per share. August is considering raising an additional $200 million capital through a renounceable rights issue at a subscription price of $4.00 per share. a) How many shares will be required to own one right? (2 marks) b) What would be the theoretical value of one right for August? (3 marks) c) What would be the best estimate of the August share price on the ex-rights date? (3 marks) d) Show how the wealth of a shareholder with 2,000 August shares would be protected whether they took up the rights offer or sold the rights on the ex-rights date. (6 marks)