Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sources of finance – equity
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
John Moffat.
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- October 22, 2014 at 6:40 am #205342
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 2Can 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 didwill 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) πOctober 22, 2014 at 5:44 pm #205441Yes – 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)
October 22, 2014 at 7:18 pm #205458Thanks Sir
you are so helpful πOctober 22, 2014 at 7:53 pm #205474You are very welcome, Ashwin π
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