Hi Bo, I met with Sonal Shah, the managing director, to discuss the share issue and suggested that the ordinary shares should be offered through a rights issue. I explained the main characteristics of a rights issue, whilst Sonal took notes, and I thought I was clear about how they worked. However, I have just received an email with a list of statements asking which ones are correct - which suggests some confusion over the terminology. Can you take a look at the statements and draft a reply clarifying? Many thanks, Mischa Mischa Petrovski Treasury manager Jordan's Footwear Which three of these statements regarding a rights issue are correct? Solution A.Shares are offered for sale at a discount to the existing share price. B.Shares are offered for sale at a discount to the nominal value. C.Transaction costs are lower than for issuing shares directly to the public. D.Transaction costs are higher than for issuing shares directly to the public. E.The TERP is lower than the cum rights price. F.The rights issue price is higher than the TERP