Firms, from time to time, raise fresh capital to support ongoing business operations and undertaking of new projects. a) Briefly explain the distinction between a pro-rata rights issues and convertible notes issue with examples. b) XYZ Limited has decided to implement a rights issue to its existing shareholders on a pro-rata basis of one new share for each 4 shares held. The issue price is $4.00 per share and the current market price is $5.00. Calculate theoretical ex-rights price per share. (5+5= 10 marks)