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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Kaplan Exam kit Q48(d)
Hi
This may be a very silly question, but could you please help me understand on how the revised suggestion would provide 45000 of new shares to be purchased?
Thanks in advance.
(It is 450,000 not 45,000)
The reason is that the nominal value of the subordinated loan with warrants attached is $300,000.
The warrants will allow the holder to get 150 new shares for every $100 nominal (per the last line of the question) and so the total number of shares is 150/100 x 300,000.
Hi John,
Thanks a tonne, I knew it was as simple as that but somehow I read it as 45000 and not 450000. I did calculate the way you showed but saw the answer as 45000 and not 450000. I guess, i still got treassuary quesitons to do and that’s why may be have paniced a little!!
Sorry for this and thanks again!!
You are welcome 🙂