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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › share price and TERP
Hello Sir,
Sometimes in question it is asking the market share after the rights issue.So if we are giving the P/E ratio then when can calculate the new share price or market value of the shares by multiplying the P/E into the Earnings
But sometimes we are not giving any information so can we say that the share price will be the TERP?
Thanks,
Usually when a question asks for the TERP you are given information about the current share price, and the price of the rights. Then we calculate the TERP in exactly the way that I explain in my free lectures.