Rob Company is considering a rights offering to raise funds to finance new projects which require Tk. 4,50,00,000. The flotation cost will be 10% of fund raised. The Company currently has 20,00,000 shares outstanding and current market price of its share is Tk. 100. The subscription price has been fixed at Tk. 50 per share. 1. How many shares should be sold to raise the funds required for financing the new project? 2. How many rights are required to buy one new share? 3. What is the value of one right? 4. Show the impact on share holders wealth who holds required rights to buy one new share if: (a) He exercise rights (b) He sells his rights (c) not exercise rights.