- This topic has 2 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Perhaps it’s me but this makes no sense, no matter how many times I look at it…
WANES? Ok I get that this is weighted average number of shares outstanding but that’s as far as it goes.
Svetlana
5m shares from 1-Jan to 1-Aug 7 months rightSo why is the WANES calculation not 5m x 7/12 = 2,916,666 but 3,070,175?
Yet for the same question and following a 1:4 rights issue the calculation is (5m + 1.25m) ergo 6,250,000 x 5/12 = 2,604,166.
Makes no sense, please help…
You are missing the TERP ( Theoretical ex right price) it is calculate 1 new shares by right price and 4 shares by market price. Then total prices divided over 5 (1+4) the result would be applied the bonus fraction. Market price before issue/ TERP
Of course….
And I was doing that but at the wrong CRAP/TERP rate and then I started to doubt that I should be adding that in, hence I reverted back to just the time apportion.
I used 4.2/3.5 x 7/12 x 5000 instead of 4.2/3.8 x 7/12 x 5000
All clear now sometimes these are just staring you in the face… Aarrrggh
- You must be logged in to reply to this topic.