Mahogany plc has an ordinary share price of £3 and is quoted on the Alternative Investment Market.The company wants to raise £20m through a one for three rights issue priced at £2.a) What is the ex-rights price?b) How many old ordinary shares were in circulation prior to the rights issue?c) Patrick owns 9,000 shares and is unable to find the cash necessary to buy the rights shares.Reassure Patrick that he will not lose value. How much might he receive from the company?d) What is the value of a right on one old share?e) What do the terms cum-rights and ex-rights mean?f) Advise Mahogany on the virtues of a deep discounted rights issues.