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Sources of finance - equity

AAshwin11y ago
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) :)
John MoffatJohn MoffatTutor11y ago#1
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)
AAshwin11y ago#2
Thanks Sir you are so helpful :)
John MoffatJohn MoffatTutor11y ago#3
You are very welcome, Ashwin :-)
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