The market price of the stock of the AA Corporation is RM$1\mathrm{.}50$ per share and there are $1$

million shares outstanding. Suppose that the management of this corporation is considering a

rights offering in connection with the issuance of $250,000$ new shares at an exercise price of

RM$1.$ Each current shareholders would receive one for every four shares owned. Assume Ali

holds $10,000-$unit shares. Demonstrate the effect on Ali$$s economic wellbeing if he exercises

the rights.