ZEC Corporation currently has 4 million shares outstanding. The stock sells for RM35 per share. The company wants to raise RM20 million to finance a new project, the firm is considering a rights...

ZEC Corporation currently has 4 million shares outstanding. The stock sells for
RM35 per share. The company wants to raise RM20 million to finance a new project,
the firm is considering a rights offering at RM25 per share.
Calculate the following:
(i) Number of shares to issued


(ii) Number of rights needed to purchase one share


(iii) Value of the right


(c) Discuss the advantages of rights offering.