Refer to the attachment.

XYZ Lid has an issued share capital of 10 million ordinary shares with a par value of [1, on which & pays a constant dividend of (04 per share. The market value per share was 12 ex-dividend. The company then proposed a I for 4 rights issue with an issue price of (1.50. The money raised would be used to finance a major new project, which was expected to increase annual profes after taxation by 1950,000. This information is released together with the announcement of rights issue. Required: () Compute the cum-right price at the eve-of the rights issue (b) Compute the theoretical ex-rights price Calculate the market price per share at the time of the rights issue if the money raised was to be used in redeem [3,7501000 of 8%% debenmores. The tax rate is 50%,ABC Lid has decided to acquire a piece of equipment costing Shs 240 000 of five years. The equipment is expected to have no salvage value ate the end and the company uses straight-line depreciation method on all it Fixed Assets. The company has two financing alternative methods available, leasing or borrowing The loan has an interest rate of 15% requiring equal-year-end installments to be paid. The lease would be set at a level that would amortize the cost of equipment over the lease period and would provide the lessor with a 14% return on capital. The company's tax rate is 40%. Required: A. Compute the annual lease payments. Compute the PV of the cash out flow under lease financing C. Calculate the annual loan installment payment d. For each of the 5 years, calculate the interest and the principal component of the loan repayment. C. Calculate the PV of after tax cash flow under the loan alternative Which alternative is better and why