Alpha limited plans to raise the needed funds of $3,600,000 through issue of new shares in the form of rights. The company plans to set the subscription price 10% below its current market price of $12 per share. The number of shares outstanding is 1 milli

Alpha limited plans to raise the needed funds of $3,600,000 through issue of new shares in the form of rights. The company plans to set the subscription price 10% below its current market price of $12 per share. The number of shares outstanding is 1 million.
Apply the technique of rights issue by calculating:
(a) The number of new shares to be issued
(b) The number of rights to be issued to buy a new share
(c) Value of right