On 1 October 2003,PK Industries Ltd announced a 1 for 5 rights issue at $2.35.The new shares were not entitled to participate in the final distribution for FY2003 of 15 cents per share.
(a)Calculate the ex- distribution theoretical ex- rights price for PK Industries Ltd if the share price prior to announcement was $2.57 and the discount to the pre- announcement share price that the rights were issued at.
(b)Now assume that the new shares to be issued under the entitlement issue were entitled to participate in the final distribution for FY2003 of 15 cents per share.

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The Answer of On 1 October 2003,PK Industries Ltd announced a 1 for 5 rights issue at $2.35.The new shares were not entitled to participate in the final distribution for FY2003 of 15 cents per share.
(a)Calculate the ex- distribution theoretical ex- rights price for PK Industries Ltd if the share price prior to announcement was $2.57 and the discount to the pre- announcement share price that the rights were issued at.
(b)Now assume that the new shares to be issued under the entitlement issue were entitled to participate in the final distribution for FY2003 of 15 cents per share.

On 1 October 2003,PK Industries Ltd Announced a 1 for 5