Delta plc wish to raise £12m by a rights issue.
They currently have 50m shares in issue and plan to offer the rights at a discount of 20% on current market price which is £1.50.
How many shares will Delta plc need to issue and what will the terms of the offer be i.e 2 for 1?

Answer rating: 100% (QA)

Step 11 Delta plc would need to issue 80 million new shares in order to raise ... View the full answer