Covida Health Care is considering issuing a rights offering to fund a $$50$ million expansion. The company has determined that the ex$-$rights price would be $$52.$ The current share price is $$55$ and there are currently $5$ million shares outstanding.

a$)$ Calculate the subscription price for the rights offering.

$(6$ marks$)$

b$)$ Calculate how many rights would be needed to buy $1$ share. $(2$ marks$)$

c$)$ Calculate the value of $1$ right.

$(1$ marks$)$

d$)$ Compare and contrast the three types of market efficiency and explain how the market would react after the rights issue if the market is weak$-$form efficient.

$(6$ marks$)$