In November 2021, PCmust share price is valued at 262.87. The company wants to expand further by investing in improving the quality of their products. To raise the capital needed, PCmust announced a rights issue. Below is an extract of PCmust rights issue. RIGHTS ISSUE STATISTICS Price per new share 22,097 pence Basis of rights issue 26 new shares for every 100 shares Number of shares in issue in November 2021 4,500,000 Target capital to raise 928,250,500 b. From the extract above, calculate the number of new shares the company will need to issue. (5 marks) c. What is the ex-right price? (5 marks) d. What is the value of one right? (5 marks) e. For a shareholder who owns 150 shares, explain how his wealth will remain unharmed if the rights are sold (5 marks) f. Explain the mechanics of rights issues and critically discuss their advantages and disadvantages. (20 marks) In November 2021, PCmust share price is valued at 262.87. The company wants to expand further by investing in improving the quality of their products. To raise the capital needed, PCmust announced a rights issue. Below is an extract of PCmust rights issue. RIGHTS ISSUE STATISTICS Price per new share 22,097 pence Basis of rights issue 26 new shares for every 100 shares Number of shares in issue in November 2021 4,500,000 Target capital to raise 928,250,500 b. From the extract above, calculate the number of new shares the company will need to issue. (5 marks) c. What is the ex-right price? (5 marks) d. What is the value of one right? (5 marks) e. For a shareholder who owns 150 shares, explain how his wealth will remain unharmed if the rights are sold (5 marks) f. Explain the mechanics of rights issues and critically discuss their advantages and disadvantages. (20 marks)