la. Primary Electric provides a rights offering to raise capital for its future business expansion. The subscription price is set at $85 per share. The number of rights for one new share is seven. It is shown that the closing price before the ex-rights day and the opening price on ex-rights day are respectively $105 and $102 per share. And the selling price for one right on ex-rights day is $1.5. i) What is the value of a right? ii) What should be the correct ex-rights price? iii) Explain how you could capture the mispricing to make an instant profit. What is the profit? (13 marks) b. Mimi Computer is a privately owned computer manufacturing company in Hong Kong. After three years of operation, the company is making a positive accumulated profit of $50 million and is now focusing on developing new products and services for the latest 5G technology. Mimi Computer is planning to raise a capital of $1000 million for its future business expansion. You are the financial manager of Mimi Computer. One day, the CEO of the company talked to you, There are three ways of raising capital for our future business development. We can raise the capital through the initial public offerings, venture capital and right offerings. What are the advantages and disadvantages for each method? Which one is suitable to us? What are the major considerations in selecting an appropriate method? Respond to your CEO's comment. Illustrate your answer with example(s). (12 marks)