Case study 1 BBD plc generate profit after tax of 15% on shareholders' funds. Its current capital structure is as follows: The board of BBD plc wishes to raise 160,000 from right issue in order to expand existing operation. Its return on shareholders' fund will be unchanged. The current e-dividend market price of BBD plc is 1.90. Three different right issue prices have been suggested by the finance director: 1.80,1.60, and 1.40. Determine and comment on: I. the number of shares to be issued II. The theoretical ex-right price III. the expected earnings per share and the form of the issue for each right issue