Astha Corporation has decided to capitalise accumulated reserves through a bonus issue of one new share for
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Question:
Astha Corporation has decided to capitalise accumulated reserves through a bonus issue of one new share for five existing shares. The shares of Astha Corporation are currently trading at a price of $4.35 per share.
You are required to calculate the theoretical ex-bonus share price of Astha Corporation.
You are a shareholder in Ethal Corporation. Ethal Corporation shares are trading in the market at $6.20. Ethal Corporation today announced a renounceable rights issue offer which provides you with a right to subscribe for one new share at $6.00 for each three shares that you hold.
Calculate the price of the right and the theoretical ex-rights share price.
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