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BPP Qn 8 – Athuro – FCFE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BPP Qn 8 – Athuro – FCFE

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  • 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: 56
    • Replies: 51582
    • ☆☆☆☆☆

    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).

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