Witter plc raised £42,000,000 from a recent rights issue. The par value of each share issued was £0.60 and the market price of one share before the rights issue was £10.00. After the rights issue, the share premium account increased by £37,800,000. What was the rights issue price of the shares issued?
A) £5.40
B) £6.00
C) £7.00
D) £10.00
Correct Answer:
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