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i’m not sure whether i ask the correct person but i hope that you can help me with this question.
Noligh plc has 2 million ordinary shares of par value £1.00 in issue. The company decided to make a 1 for 4 rights issue at £1.85 per new share and the cum-rights share price was £2.10. The theoretical ex-rights price was found to be £.05 and the value of the rights was found to be 5p per existing share. If Rosemary, a shareholdee, owns 1000 shares in Nolig plc, she has the right to subscribe for 250 new shares. How will Rosemary’s wealth be affected in each of the following scenarios?
1)Rosemary subcribes for 250 new shares
2)Rosemary sells all her rights
3)Rosemary take no action over the right issue
Hoping that you can help me. Thank you ?
You need to repost this on the F9 section.