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New Shares Issuance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › New Shares Issuance

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • August 17, 2020 at 8:29 am #580850
    Avatarkoonkoon
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    You plan to evaluate the share price of Axiata Berhad after the issuance of new shares as follow. Bonus Issue 1: 2 Rights Issue: 1: 3 The rights issue is 50% lower than the current market price. Show the computation on price adjustment if Axiata Berhad implements the bonus and rights issues based on the above ratios.
    on 10Aug2020 price is 3.17 and volume is 9590

    August 17, 2020 at 9:11 am #580862
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Please do not simply type out full questions and expect to be provided with a full answer.

    You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about. Then I will explain.

    Although the bookkeeping entries for rights issues and bonus issues are explained in full in my free lectures, the question as you have typed it could not possibly be asked in Paper FA.

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