b) MEC Corporation currently has 4 million shares outstanding. The stock sells for RM35 per share. The company wants to raise RM20 million to finance a new project, the firm is considering a rights offering at RM25 per share. Calculate the following:

(i) Number of shares to issued (2 MARKS)

(ii) Number of rights needed to purchase one share (2 marks)

(iii) Value of the right (6 marks)

(c) Discuss the advantages of rights offering. (6 marks)