March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

value of rights

This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 6 posts - 1 through 6 (of 6 total)

Author
Posts
July 25, 2022 at 7:55 am #661780
dennissherpa101
Member
- Topics: 58
- Replies: 60
sir what is the value of rights per existing share . 2 for 5 and the value of rights is $0.50..
July 25, 2022 at 2:18 pm #661810
John Moffat
Keymaster
- Topics: 57
- Replies: 54831
If the value of the rights is 0.50 per new share, then the value for each existing share is (2 x $0.50) / 5 = $0.20.
July 25, 2022 at 3:34 pm #661818
dennissherpa101
Member
- Topics: 58
- Replies: 60
so if it was 3 for 5 then we would multiply by 3 right sir?
July 26, 2022 at 6:41 am #661871
John Moffat
Keymaster
- Topics: 57
- Replies: 54831
Yes.
July 27, 2022 at 3:39 am #661929
dennissherpa101
Member
- Topics: 58
- Replies: 60
Sir is it not per exisiting share so why multiply by 2?
July 27, 2022 at 9:11 am #661937
John Moffat
Keymaster
- Topics: 57
- Replies: 54831
In your first post. there were 2 are shares and so we multiplied by 2. In your second question there were 3 new shares and so we multiplied by 3.
In both cases, since they were given for holding 5 existing shares we divided by 5.
Author
Posts

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.