A company wishes to raise additional finance using a rights issue. The following data applies: There are

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A company wishes to raise additional finance using a rights issue. The following data applies: There are 10 million shares in issue with a market price of R4 each The terms of the rights issue will be 1 new share for 4 existing shares held After the rights issue, the theoretical ex-rights price (TERP) will be R3.80 Assuming all shareholders take up their rights, how much additional finance will be raised? Question 2 Answer a. R9 500 000 b. R38 000 000 c. R7 500 000 d. R6 000 000

Posted Date: May 18, 2024 03:07 AM

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A company wishes to raise additional finance using a rights issue. The following data applies: There are

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