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Sir , June 2008 question 2 THP company, can you please explain me part d
What is it you want me to explain?
Is it what the question is asking for, or is it some part of the answer that you do not understand?
1.Price paid for CRX co
2. (ii) I did not get the question
1. The question says that the purchase price for CRX is the rights issue funds raised less issue costs of $320,000. You have calculated in part (a) of the question how much is raised from the rights issue, so subtract 320,000 and that is then how much is paid for CRX,
2. If the tax savings are made public then they will be reflected in the share price and so the share price will include the tax savings.