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Can someone please answer this please ASAP, or tell me what things to look out for?

Forums › ACCA Forums › ACCA FM Financial Management Forums › Can someone please answer this please ASAP, or tell me what things to look out for?

  • This topic has 0 replies, 1 voice, and was last updated 14 years ago by shohibur.
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  • April 4, 2012 at 2:57 pm #52114
    shohibur
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    • Topics: 2
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    Duff is hoping to raise £6.25m on the stock market through a rights issue. However, Duff is unsure what the form of the rights issue should take and is seeking your advice. Duff’s current share price is £5 and it is hoping to raise a total of £6.25m. It already has 3m shares outstanding and is thinking of offering a discount on its share price to existing shareholders to the amount 25%. You have been asked to advise on what form the rights issue should take? (10 marks)

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