Sir
when examiner ask
"what % of rights could I take up in order for there to be no change in my cash balance" , referring back to your example 2
Can we do it this way
'
taking the "value of a right" we divide it by "vlaue of share after rights issue" (ex-right m.v)
like in your example 1.50 (value of a right) / 7.50 (ex-right m.v)
effectively got 20% instead of doing the balancing figure like you did
will I get the same answer to all questions asking same thing? :p
clear me Sir because I think this way is the quickest one for MCQ (if examine) :)
Ask the Tutor ACCA FM
Sources of finance - equity
Yes - that is fine and will always work.
(For MCQ's it will be quicker, but just do make sure you understand in case more is asked about it in Section B)
Thanks Sir
you are so helpful :)
You are very welcome, Ashwin :-)
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