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Open tution Revision mock exam

PPoonam7y ago
The share price of CP Plc is $4 per share. they annouce a 1 for 5 rights issue at $3.10 per share. What % of the rights offered to a shareholder does a shareholder need to take up so as to have no net cash flow resulting from the issue? Answer given is 19.48% Kindly explain how is it calculated. P.S I am unable to view the mock exam screen fully and some options are down but i cannot scroll down the window on that page. I have ried zoom out also but it didnt help.
John MoffatJohn MoffatTutor7y ago#1
Have you not watched my free lectures, because I show exactly how to solve this (with explanation) in the lectures :-)
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