Rex Ltd [REX] completed its initial public offer [IPO] and listed on the Australian Securities Exchange [ASK] on the 9th of January 2020. Rex Ltd issued 15,000,000 new shares in the [P0. The share issue was underwritten in a firm connnitment agreement by the underwriter Tyro Ltd. The underwriting fee was 3%. The [PO offer price was set at $25 per share. In addition, the company needed to pay ASIC registration fees and legal fees, which were $500,000 in total. 0n the IPO day, the share price increased to $30 by the end ofthe rst day oftrading. The company had 100,000,000 shares on issue before the offer (note that no pre-IPO shares were sold via the [PO]. Total income and the total number of shares for Rex Ltd and for two competitors, who both listed on the local stock exchange in 2018, are provided below. REX Ltd Competitor 1 Competitor 2 Income (2019) 5?,543,000 $19,000,000 $15,710,000 Number of shares 100,000,000 152,000,000 120,030,0[D Competitor's share price (end of 2019} S 1.50 S 1.44 i. Using relative valuation, what is you estimate of the value of Rex Ltd? ii. Was the offer underpriced or overpriced? iii. By how much is the offer mispriced [either under- or over-priced] relative to the offer price by the end of the first trading day? iv. 'What was the net amount raised by the [PO? v. Briey describe the process of an underwritten iniliial public offer [IPO]. vi. Overall, would you have invested in this 1P0? [Note: outline the reasoning for your decision]. vii. Three years after the IPO, Rex Ltd has 150 million shares of stock outstanding at a price of $45 per share. The company would like to raise more funding through a seasoned equity offering [SEO] and has announced a rights issue. Every existing shareholder will be sent one right per share ofstock that he or she owns. The SEO plan requires 5 rights to purchase one new share at a price of $40 per share. What would be the total amount of money to be raised through the rights offering? 1What is the value of one right? What is the value of one right per existing share