The issued share capital of a company consists of 1,680,000 ordinary shares of £1 each. Half way through its financial year the company made a rights issue of 2 for 4 at an exercise price of £1.66 a share. The market value of the company's shares was £2.19 a share just before the rights issue.. The company reported a net profit after taxation for the year of £672,000. The market value of each ordinary share at the end of the year was £2.82. Calculate the theoretical ex-rights value per share in £ to two decimal places.
The issued share capital of a company consists of 1,680,000 ordinary shares of £1 each. Half way through its financial year the company made a rights issue of 2 for 4 at an exercise price of £1.66 a share. The market value of the company's shares was £2.19 a share just before the rights issue.. The company reported a net profit after taxation for the year of £672,000. The market value of each ordinary share at the end of the year was £2.82. Calculate the theoretical ex-rights value per share in £ to two decimal places.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 19EA: Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600...
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