rights issue

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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February 23, 2019 at 2:16 am #506268
asmalavika
Member
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There are 500000 shares in a company where the share price is $5.5.the company want to raise $1000000 using rights issue incurring an insurance cost of $25000.rights price is $4.5 per share. find out the value of right?
options are:
a).65
b).77
c).50
d).98
February 23, 2019 at 11:48 am #506305
John Moffat
Keymaster
- Topics: 57
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There is no point in simply setting me a test question and expecting an 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 and then I will explain.

Have you watched my free lectures on rights issues?

The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
February 23, 2019 at 3:43 pm #506323
asmalavika
Member
- Topics: 3
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Sir,it was a mock exam question.so i couldn’t review the answer.sorry….
February 24, 2019 at 8:33 am #506370
John Moffat
Keymaster
- Topics: 57
- Replies: 54851
But surely whichever company provided you with the mock exam has now provided you with the answers 🙂

And have you watched my free lectures on this?
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