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5 Fantasia plc is an all equity financed company specialising in animated films, it needs to raise £330m and has decided on a rights issue at a discount of 17.5% to its current market price. Currently Fantasia has 500m shares in issue and a market price of £2.00 / share. Required a) Calculate the terms of the rights issue b) Assess the impact on the wealth of a shareholder who owns 10,000 shares and can only afford to take up half of their rights ,and sell the other half rights.