• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Q31a-Tin Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Q31a-Tin Co

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by misbahkiran.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 25, 2018 at 7:31 am #469322
    farahanna
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi Sir,
    I am currently doing revision on March/June 2018 past year paper. Referred to the question a- calculate the theoretical ex rights price per share.

    Question:
    If equity finance is used, a 1 for 5 rights issue will be offered to existing shareholders at a 20% discount to the current ex dividend share price of $5 per share. The nominal value of the ordinary shares is $1 per share.

    Answer:
    [(1x$4)+(4x$5)]/5 = $4.8

    Based on the ACCA’s answer, I don’t understand why the share divided by 5 instead of 6?

    Thanks.

    August 25, 2018 at 8:11 am #469329
    misbahkiran
    Participant
    • Topics: 109
    • Replies: 194
    • ☆☆☆

    hi

    its 1 for 5

    for 5 shares . 5*5=25
    1 for 5 . 1*4= 4
    29

    ex right price . 29/6=4.83

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • AdityaSairam on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in