Pinder Ltd has 15 million shares outstanding, with a current share price of $18.55 each. Pinder…

Pinder Ltd has 15 million shares outstanding, with a current share price of $18.55 each. Pinder Ltd then issue a 2-for-15 renounceable rights issue with a subscription price of $10 per share. Which of the following statement is correct in relation to the rights issue?

a. More than one of the other statements is correct.

b. If the shareholders of the firm choose to do nothing, their wealth will remain the same.

c. The shareholders of the firm can choose to sell the right to buy 1 new share in the exchange for $1.01.

d. None of the other statements is correct.

e. The theoretical share price on the ex-right date is $17.54.