Classique inc a manufacturer of reproduction parts of Classique automobile needs to raise 4million in new equity via a rights offering. The subscription price is $16 per share, the firm currently has 1 million shares outstanding and the current market price per share is $20.

a) how many new shares will be created as a result of this offering?

b) How many rights are required to purchase one share?

c)What is the value of the right?

d) What is the ex value of the shares?

e) What has happened to the value of the firm's equity after the rights have been exercised?

PLEASE ANSWER WITH DETAILED EXPLANATION AND CALCULATIONS.