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Ahmed mohamed ali says
October 19, 2015 at 8:40 pm
sir please explain how to get the right answer?
A UK private company has one million ordinary shares of £1 nominal value. Their estimated value as an investment is £2.20 each. The company wishes to raise a further £600,000 from a rights issue.
The directors decide to offer the new shares at £2.00 each to the existing shareholders and estimate that 60% of the shares offered will be bought.
Which of the following rights issues should be offered?
(a) 1 for 2
(b) 2 for 5
(c) 3 for 4
(d) 3 for 5
John Moffat says
October 19, 2015 at 8:41 pm
Please ask this sort of question in the F3 Ask the Tutor Forum, and not as a comment on a lecture.
October 20, 2015 at 7:54 am
October 17, 2015 at 12:06 pm
ordinary share capital
5000000 shares of 25 c each 125,000
share premium account 100,000
in the year ended 30 june 20*3 the company made a rights issue of 1 share for every 2 held at $ 1 per share and this was taken up in the year the company made a bonus issue of 1 share for ever held ,using the share premium account for the purpose.
what was the companys capital structure at 30 june 20*3?
sir i didn’t understand this ques .
October 17, 2015 at 3:35 pm
It wants to know the balances on the share capital and share premium accounts at the end of the year (after the rights issue and after the bonus issue).
I go through how to do these sort of questions in the lecture.
October 18, 2015 at 4:20 pm
sir can you please do the math and explain it
October 18, 2015 at 10:53 pm
The answer is at the back of the lecture notes, and the explanations are all given in the lecture.
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