Purple Ltd has 10 million ordinary shares which were issued at 80 cents each. The shares are currently valued on the stock exchange at $1.60 per share. The directors of Purple Ltd have decided to make a one-for-eight rights issue at $1.50 per share.
REQUIRED:
a)Calculate the price of a share following the rights issue.
b)Calculate the value of the rights offer on a per share basis.
Correct Answer:
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b)As the price of each share, in theory...View Answer
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