- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › December 2008
December 2008 a I can’t find the number of existing shares in the question. It says it’s 4,000,000
Which question?!
Oops sorry
q 1 a
You don’t actually need to know the number of existing shares, although you can calculate how many there must be.
The rights issue is at 2.50 less 20% = $2 per share. They are raising $5M and therefore must be issuing $5M/$2 = 2.5M shares.
It is a 1 for 4 rights issue and there the current number of shares in issue must be 4 x 2.5M = 10M.