1. A store has £200 Mil shares in issue. And wants to raise £35million for the store. shares are quoted at 220p and the rights issue will have to be quoted at a lower price because there is a risk that the market price will fall in the 3-week offer period. The company will issue 35million new shares at 200p per share. It will be a 1-for-4 issue deal, which that means for every 4 old shares the owner will get one new share. 
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3. With this information calculate the post-issue price of the shares and the value of a right.

Answer rating: 100% (QA)

Post Issue Price 4220 ... View the full answer