Brand plc generates profit after taxation of 15% on shareholders funds. Its current capital structure is as follows: $ Ordinary shares of 50p each 200,000 Shares premium 87,500 Reserves 312, 500 The board of Brand plc wishes to raise $160,000 from a rights issue in order to expand existing operations. Its return on shareholders funds will be unchanged. The current ex-div market price of Brand plc is $1.90. Three different rights issue prices have been suggested by the finance director: $1.80, $1.60 and $1.40. Determine the number of shares to be issued, the theoretical ex-rights price, the expected earnings per share and the form of the issue for each rights issue price. Comment on your results.