Hello, I dont understand the solution for this question.. The text book answer writes: Nominal value of new shares = £150m Cash raised = £900m I dont understand where this £900m came from. My answer comes to be £90m.. Here are the steps: Mkt capitalization = P x no. of shares = .15 x 600 i.e £90m the balance sheet proceeds will then change entirely from the solution? Can somebody please tell me where I am wrong?
The offer price is 150p, so working in pounds you should multiply by 1.5 instead of .15 I just made the exact same mistake when I tried to work this out
