Shares of ABC Mining Ltd are currently traded at $8.07. Due to the significant impact of COVID-19 on their operations, ABC Mining Ltd has decided to strengthen their liquidity position through a renounceable right issue offer to shareholders. Having read through the offer booklet, Jenni is aware that for every nine existing shares that she owns, she is eligible to subscribe for one new share at an issue price of $6.05.

Calculate:

(a) the value of each renounceable right (by specifying the input to the calculator)

(b) the theoretical price of each share following the right issue.