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F7 Earnings per share

This topic has 4 replies, 4 voices, and was last updated 8 years ago by MikeLittle.

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April 28, 2016 at 3:08 pm #312961
Arooba
Member
- Topics: 58
- Replies: 45
Hi
I came across a sentence in one of the EPS questions, it says, The company made a rights issue of 1 for 4 at $1.75. The cum rights price was $2 per share.
Could you please explain to me what does cum rights price mean? and how am I supposed to treat it in the answer.
thanks a lot
April 28, 2016 at 7:09 pm #312980
biggles
Participant
- Topics: 6
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I think if your expecting Mike to answer you need to post your question on the ask the tutor forum!
May 14, 2016 at 9:32 pm #315105
Muhammad Ahsan
Member
- Topics: 1
- Replies: 2
Hi Arooba,
The cum right price OR the cum rights actual price or CRAP is the market price of the share immediately before the rights issue.
This definition is given the the OT notes as well.
May 15, 2016 at 12:14 am #315109
Arooba
Member
- Topics: 58
- Replies: 45
thanks a lot
May 21, 2016 at 11:58 am #316187
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
Arooba – please tell me why you continue to refuse to follow the advice that keeps telling you to “watch the video lectures and follow the course notes”
You seem to want to do neither
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