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extracts from SFP at 30 april 2015 2014
000 000
ordinary shares of 50 cents each 270 160
share premium account 192 120on 31st july 2014 a bonus issue of 1 for 8 was made financed by capitalising some of the general reserve. there then followed 1 for 2 rights issue of share on the following terms
exercise price 90 cents
mid- market price immediately before the issue $1.10what amount will appear in net cash flow from operating activities for y/e 30 april 2015?
Hi,
The bonus issue of shares does not generate any cash, but you need to work out the number of shares that are issued so that you know the total number of shares prior to the rights issue.
Using the total number of shares in issue you can then look at the number of shares issued from the rights issue, and use the exercise price of 90 cents to work out the cash received.
Give it a try and let me know how you get on, and we can then address any issues that you may have.
Thanks
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