An Australian company, OzCPY has made a renounceable rights issue offer to their existing shareholders. The share price when announcing the rights was $32.65 and the firm's current ordinary share price is $33.65 and the 2-for-9 pro-rata issue has an offer price of $31.51.

What is the theoretical ex-rights share price of the firm?

Answer rating: 100% (QA)

To calculate the theoretical exrights share price of the firm we need to consider the eff... View the full answer