this is urgent please try to do it within 45minutes

Q3. STL Corporation Berhad wishes to increase its production capacity by purchasing additional plant and equipment at a cost of RM3.8 million. The extracted profit and loss account for the year ended 31 December 2017 is as follows: RM million Sales turnover 140.6 Profit before interest and taxation 8.4 Interest 6.8 Profit before tax 1.6 Taxation 0,4 Profit after taxation 1.2 Earnings per share 15 sen In order to finance the purchase of the new plant and equipment, the directors of the company have decided to make a rights issue equal to the cost of the equipment. The shares are currently quoted on the stock exchange at RM2.70 per share and the new shares will be offered to shareholders at RM1.90 per share. Required: (a) Determine the theoretical ex-rights price per share. (10 marks) (b) Compute the value of the rights on each existing share. (5 marks) (c) Assuming the increase in production capacity will lead to an increase in profit after tax of RM600,000 per annum and the price-earnings ratio of the company will remain unchanged after the rights issue, calculate the market value per share after the rights issue. (6 marks) (d) Compare and contrast the market value per share after the rights issue calculated in part (c) with the theoretical ex-rights price per share calculated in part (a), Justify the differences. (9 marks)