Bonus issues and Rights issues part a

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Comments

  1. Mr. Tutor………In the rights example using example 3, the RPI in the course notes for Dec 2012 is 246.8, instead of 229.2. I get a capital loss of 131 in the end. Is that right?

  2. Thanks, it makes life easier having this page. Thanks again for your kind and timing response.

  3. Could you clarify the computation of cost on example 4 CH16 page 195? What is the base for 7500 and 2500?
    Thanks

    • @kenean, Hi see point 6c on page 93 of the notes, ‘ the cost is split in the same proportions as the market value’. Total share market value is 40K (100%),ord shares are 30K (75%) plus pref shares are 10K (25%), so its 75% and 25% of the 10K cost which is 7.5K ord shares and 2.5k pref shares.

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