XYZ Holding plc has 20million ordinary shares of 40p in issue. These shares are currently valued on the stock exchange at 1.50 per share. The director of XYZ Holding believe the company requires additional long-term capital and have decided to make a one-for-four rights issue at 1.2 per share. An investor with 1000 shares in XYZ holdings has contacted you for investment advice. He is undecided whether to take up the rights issue, sell the rights, or give up the rights. 1) Calculate the theoretical ex-rights price of an ordinary share. 2) Calculate the value at which the rights are likely to be traded. 3) Please calculate the investor's wealth for each of the possible choices