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You are the Chief Financial Officer of Hilton Ltd, a largemanufacturing company operating within the Asian-pacific region.The CEO, Mr Ray Ellis, has just returned from a shareholdersengagement event to promote the company’s upcoming right issue ofshares. He was confronted with some questions relating to issue ofshares and whether there were any pros and cons to issuing sharesvia rights, bonus or by private placement. Issues related to thecompany’s earnings per share (EPS) also came up during the event.Mr Ellis was unimpressed with both the questions and his inabilityto respond in a comprehensive manner. He promised the shareholdersthat he would email them with clear responses to the issues raised,after he consulted with his Chief Financial Officer.In consulting you, Mr Ellis would like to know your thoughts on thefollowing:? What is the difference between rights issue and bonus issue ofshares?? What are the advantages and disadvantages of both methods ofissuing shares?? Should Hilton Ltd consider a private placement and is there anybenefit to having a private placement instead of a rightsissue?? What effects does a bonus issue of shares made in the middle of afinancial year have on the EPS calculations of a company?RequiredWrite a short memorandum format report to the CEO of Hilton Ltd toanswer his questions. Your report should cover all four questionsraised by Mr Ellis. Each question should be answered under asub-heading within the report with appropriately citedreferences.