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Hi,
Please could you help me in understanding how the share price for the 4th observation of the CEO is worked out? And also how in the answer the 6m shares was £12m.
Thank you!
The share capital figure has moved from $40,000 to $46,000 and, at the same time a share premium account has appeared
The equity shares have a nominal value of $1 each so that movement of $6,000 in the share capital account represents the issue of 6,000 shares and the movement in the share premium account means that those 6,000 shares had a value of $12,000 ($6,000 nominal value + $6,000 premium)
And if 6,000 shares have a value of $12,000, that gives us a value per share of $2
OK?
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