Hello Tutor, I have a question about the GXG Co and it's from PYQ June 2013 question 4(b)
although the question does not ask to calculate the TERP (assuming of the right issue), if I want to calculate it, is it the figure at the below is correct?
10m x 2.75/share = $27.5m
1.32m x 2.50/share = $ 3.3m
=
30.8m/11.32m share= $2.72/share
and after net issue cost will be = $2.72 - $0.07 = $2.65?
($100,000/ 1.32m share)
Thank you.
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GXG Co
7y ago#1But there is no rights issue in the question!!!
The issue of shares in option 2 is to new shareholders. Rights issues are issues to existing shareholders.
I know ,so I am assuming the question is about right issue
Sorry ,I found the answer already,Thank you.
7y ago#4You are welcome :-)
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