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This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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May 16, 2015 at 12:48 pm #246357
Steven
Member
- Topics: 22
- Replies: 15
Hi Sir,
Not sure I understand how you got the 30 share premium in chapter 13 test question 5
Kind Regards
Steven
May 16, 2015 at 1:32 pm #246371
John Moffat
Keymaster
- Topics: 57
- Replies: 54709
After the bonus issue, there are 150M shares in issue.
The rights issue is of 2/5 x 150M = 60M shares.
The premium on each share is $1.50 – $1.00 = $0.50. So the total premium is 60M x $0.50 = $30M.
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