Botch & Wreck Constructions (BWC) Limited is an all equity financed company. It has just announced a rights share offer, with the following details. The company currently has 100 million shares on issue (before the rights offer), shares are trading in the market at $10 each. The company needs to raise $200 million in additional capital. The new shares (offered via the rights) are offered at a 20 percent discount to current share price. As an existing investor you own 1.000 shares in the company. Answer the following 1 What is the number of new shares issued as result of the share offer? 1 What are the terms of the rights offert m What is the value of one nght to subscribe for new shares? What is the value of the right pereach share held? 10. Present a numerical example and comment on the pre offer and the post-offer wealth of a shareholder who held 1 600 shares at the time of the offer announcement (assume that this shareholder participated in the rights share offer to the full extent of the nights awarded to the shareholder)