SERVAS plc has an issued share capital of $4$ million $1\mathrm{.}00$ shares. Current market value is $2\mathrm{.}40$ a share.

SERVAS wish to raise additional finance and are considering a rights issue of one new share for every five shares currently held, at a $10\%$ discount to market price.

B$7$AF$100$

i$.$ ii$.$ iii.

c$)$

Calculate the theoretical ex$-$rights price.

Calculate the value of the rights

Calculate the number of shares in issue after the right