- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
In part D, I can’t understand the fraction part. Please help me understand the logic behind using price before/price after and then multiplying it with the others to get weighted average? Also, what do you mean by theoretical ex-rights price for price after?
I’d not worry too much about the logic as it is far too complicated and isn’t required for the exam.
The price after is also referred to as the theoretical ex-rights price. Theoretical as it is calculated on an expectation of the price, ex-rights as it is after the rights issue.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.