Amie Plc's rights issue raises cash of £5,000,000. Share capital is credited with £1,500,000 and share premium is credited with £3,500,000. 10 million shares were issued in the rights issue. What was the rights issue price per share?

Question

Quizplus · Accepted Answer

The total cash raised is £5,000,000 for 10 million shares, so the price per share is £5,000,000 / 10,000,000 = £0.50 or 50 pence.

Amie Plc's Rights Issue Raises Cash of £5,000,000