Fantasia plc is an all equity financed company specialising in animated films, it needs to raise 330m and has decided on a rights issue at a discount of 17.5% to its current market price. Currently Fantasia has 500m shares in issue and a market price of 2.00 / share. Required (a) (b) (c) Calculate the terms of the rights issue Calculate the theoretical ex rights price (the price after the rights issue) Assess the impact on the wealth of a shareholder who owns 10,000 shares and can only afford to take up half of their rights