Munch Nachos Limited has a chain of restaurants serving Mexican and Continental food across Southeast Asia. They are listed on the Singapore Stock Exchange and have an ordinary issued capital of $1,600,000 in shares with a face value of 20 cents each. The current market price of each share is $15. What will happen to the share price of Munch Nacho if the board decides to opt for a. a “1 for 5” bonus offer? b. a “1 for 5” rights issue at the issue price of $11 per right share? c. a “3 for 1” stock split? What would be the total number of shares outstanding in the end for each of the proposal in a, b, and c?

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The ordinary issued capital of 1600000 face value RM 020 each Tota... View the full answer