HiLife's main competitor, LoLife Limited is looking to expand and is contemplating a renounceable rights issue. There are currently 2 million shares outstanding with a market value of $60 each. LoLife needs to raise $24 million and wants you to design a rights issue that will allow the new share price to be no lower than $55 and for there to be no more than 2.5 million shares outstanding after the issue. 1. Calculate how many shares must be held to obtain the right to one new share.