Exiting shares 4m valued at $2.8/share.
Rights issue of 1 share for every 3 shares at $2.0.
What is the value of a right?
TERP = $2.60/share
Is it the Theoretical ex price - issue price?
which is $2.6-$2.0 = $0.6
Or $2.8 - $2.6 = $0.2
am confused
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Value of a Rights Issue of shares.
11y ago#1The value of a right is the TERP - issue price. So for this question, $0.60.
(It is 0.60 for each new shares, or alternatively 0.60/3 = 0.20 for each existing share)
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