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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chapter 11 – Finance Sources – Equity – example 2
Hi John, just a quick question.
In your lecture for example 2 where Mrs x owned 1200 shares, you asked us to add a part (e) what percentage should be taken up to be no change in the cash balance?
You showed us a detailed calculation (which I understood) and the answer was 20%.
My question – was it just co-incidence, or could we not just take the Value of rights ($1.50) and divide by the Ex rights MV ($7.50)
i.e. 1.50/7.50 = 0.20 ?
Or was this just a coincidence in this question?
Thanks
Sorry – it is just a coincidence 🙁