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    • Profile photo of MikeLittle says

      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?

  1. avatar says

    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!

    • Profile photo of admin says

      @ 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.

  2. avatar says

    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?

    • avatar says

      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??

      Thanks

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