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December 2, 2014 at 4:34 pm
can someone please help me. I am really confused as to how the rights fraction is calculated
December 2, 2014 at 4:40 pm
How many shares did you have BEFORE the rights issue and what was the market price? So your investment was worth how much?
Now, how many new shares did you buy through the rights issue and how much did they cost? So your investment has gone up by how much?
So now you have how many shares? And what are they / your investment worth?
So that means that each of your existing shares is worth how much?
Ah! Right! So what you’re telling me is that the market price of your shares BEFORE the rights issue divided by the theoretical per share price AFTER the rights issue is the same as the rights fraction! Is that so?
Sorry, you had a question – what was it you were asking?
August 22, 2013 at 5:12 pm
the last year as restated figure.. 60c * (the reciprocal of bonus issue i.e)6/7 *( the reciprocal of rights issue I.e) 2.7777/3 which gives 47.61? Is that correct?
November 20, 2012 at 9:14 am
sorry seems i have been using 2.7 rather than 2.78. but am still struggling with how to arrive at 1800000
November 20, 2012 at 10:56 am
@princefury007, Again try 3/2.7777777
November 20, 2012 at 9:07 am
hello mike , just wondering how you got the 1800,000 no of shares and i have been punching this into the calculator 730000*2/12*7/6*3/2.78 and it keeps giving me 157716 rather than 153300 which your answer states! just wondering if you have done something which i am missing thanks!
@princefury007, Hi. Try using the rights fraction 3/2.77777777
June 16, 2012 at 7:46 pm
very helpful, thank u mikelittle!
Miss A.. says
October 22, 2012 at 2:33 pm
@nevilamuca, yup.thnx a lot
November 23, 2011 at 7:27 am
I know y am stressed? but u, why? u don’t hav an exam. All points noted, but wasn’t whining.
November 22, 2011 at 5:46 pm
Is it possible to appeal to the humane side of Mike & Admin? Please giv us/me IAS 39, Know u have it, can’t have not lectured it. Please? u r such wonderful people!
November 23, 2011 at 7:03 am
@ faip3 you can appeal to any side you want…..
you are naive though to think that tutors teach everything that is in the notes!!
You are getting all these lectures free, so appreciate it! Even students who sit in the class and pay for it, are NOT taught certain syllabus areas, there is a limit what can be taught in 5 days!
so this is HOME Study! so, I am afraid, it’s time you learn how to read study text and notes and stop whining
It was said many times, what you see is what you get
can’t upload something that does not exist.
June 13, 2011 at 10:19 pm
how did he get 2.78 from in the fraction. Why is it not 9/7
October 22, 2012 at 2:31 pm
7 @ 3=21
2 @2= 4
rights fraction: 3/2.777778
October 22, 2012 at 2:37 pm
@success, 9/t would be the fraction if it had been a BONUS issue.
For a rights issue, you must go through the process shown by MissA
October 22, 2012 at 2:38 pm
@MikeLittle, That should, of course, be 9/7, not 9/t!
June 13, 2011 at 1:44 pm
This video not working after 10.07
June 13, 2011 at 5:07 pm
video is fine, before you press play
wait for it to load if you are on slow connection,
May 2, 2011 at 11:08 am
Hi – no, it shouldn’t make a difference to your chances of success in the exam. But it does illustrate the point that, by rounding, you do lose that element of accuracy!
May 2, 2011 at 8:34 am
very simple and precise calculation of bonus issue is given in Kaplan Book, why so complicated calculation here, is this gonna make any difference is getting marks in exam?
November 23, 2010 at 6:30 pm
actually what he did is when he have took the figure of 2.7 but mulitplied it by 2.777777778. thats y there is difference.
hope it will make sense to you
November 16, 2010 at 10:23 am
could you please tell me how did the 47.62C at about the end of this vedio come from?
it seems neither 60C*730,000/1,440,300 nor 60*1,000,000/1,440,030.
thanks a lot
May 5, 2013 at 1:11 pm
I’m also struggling to see where the 46.62 at the end has come from.
As in Example 3, this is the reciprocal x the disclosed EPS, but for example 4 this would mean 60c x either the reciprocal of the rights and or bonus and neither of those options or an average comes to 46.62??
October 17, 2010 at 6:47 pm
admin is rude
June 13, 2010 at 9:27 am
Video works just fine!!
mend your PC please,
June 13, 2010 at 6:22 am
This link is broken.
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