1. 

   AKS01 Very Active Member

   I am trying to calculate the theoretical ex-rights price but cannot get to any of the answers from the multiple choice.
   Would it possible to break down the calculation please?

    

   AKS01, Jul 14, 2019

   #1
2. 

   Lynn Birchall ActEd Tutor Staff Member

   Hi
   
   This is a scrip issue so, unlike a rights issue, doesn't raise any new capital for the company.
   The number of shares in issue will increase from 2m (with a price of £4.00) to 2.5m with a price of :
   (2m x £4.00) / 2.5m = £3.20
   
   Hope this sorts it
   Lynn

    

   Lynn Birchall, Jul 15, 2019

   #2

   AKS01 likes this.

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