please show the calculation for question c)

a) Explain the risk profile of a declining business and the type of returns expected by investors. (5 Marks) b) Describe the THREE (3) strategies that a company may adopt in order to delay or prevent its decline. (9 Marks) c) Red Sub Plc. had 25 million $1 ordinary shares in issue and total debt capital of $50m. On 14 September 2016 , their closing price was $2.39. The company had seen its market share decline slowly over the previous years. Due to adverse market conditions the period between 15 September and 29 September 2016, there is a further decline in the company's share price. On 29 September 2016, the company's share price closed at \$2.00. On 30 August 2016, Red Sub Plc. has announced its intention to raise additional share capital through a $25m one-for-one rights issue at a deeply discounted price of 1 per share. The reason for raising this additional share capital was to drastically reduce its gearing ratio. Determine: i) the ex-rights share price (5 Marks) ii) the gearing ratio after the rights issue. (6 Marks)