BPP Qn 8 – Athuro – FCFE

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
June 4, 2022 at 4:58 pm #657369
kaladevee
Member
- Topics: 1
- Replies: 1
Hi Guys, does anyone know why the answer kit is taking 90mil shares multiply by 4/3.

This is for part (a) ii. I don’t understand where is the 4/3 coming from?

Would be great if someone could explain this.

Thanks a mil
June 5, 2022 at 9:18 am #657414
John Moffat
Keymaster
- Topics: 57
- Replies: 54851
The question says that they had made a 1 for 3 right issue.
Therefore the rights issue was of 1/3 x 90m = 30m shares, which means they ended up with 120m shares (which is 4/3 x 90m).
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.