Associated Breweries is planning to market unleaded beer. The finance the venture, it proposes to make a right issue with a subscription price of 10.00 One new share can be purchased for each two shares held. The company currently has outstanding 100,000 shares priced at 40.00 a share. Assuming that the new money is invested to earn a fair return give values for the:
1. number of shares, 2. amount of new investment, 3. total value of company after issue, 4. total number of shares after issue and 5. share price after the issue