TERP

A 1 for 5 rights issue will mean that they are issuing 6.25m / 5 = 1.25m shares. Since they are raising $5M the issue price for the rights must be 5/1.25 = $4.00 per share. You then calculate the TERP in the way I explain in my free lectures on this :-)

Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers because they have answers and workings. You know the total market value of all the shares in issue at the moment. You can calculate how many new shares will be issued and therefore the new total number of shares and the new total market value. The difference between the new total market value and the old total market value must be the cash raised.