Question: NOTE: please provide with details formula and explanation! Question: PT. TPI will conduct a rights issue under the following conditions. Each owner of 2 old

NOTE: please provide with details formula and explanation!

Question:

PT. TPI will conduct a rights issue under the following conditions. Each owner of 2 old shares has the right to buy 1 new share at a price of IDR 3000 per share. The number of old shares outstanding is 100 million shares with a price on the stock exchange of IDR 3500 per share.

a. How much money will be raised from the rights issue? b. It is hoped that the funds from the rights issue can be invested by generating NPV +IDR 100 billion. What is the share price after the rights issue?

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