Carpets Direct Ltd. Income Statement and Retained Earnings Increase for the year ended April 30 The company has 120 million common shares outstanding. The shares of the business are currently being traded on the Toronto Stock Exchange at a price-earnings ratio of 22 times and the board of directors has decided to issue the new shares at a discount of 20% on the current market value. Required: (a) Calculate the theoretical ex-rights price of a common share in Carpets Direct Ltd. (b) Calculate the price at which the rights in Carpets Direct Ltd. are likely to be traded. (c) Identify and evaluate, at the time of the rights issue, each of the options arising from the rights issue to an investor who holds 4,000 common shares before the rights announcement