At the beginning of the current reporting period (1 January 2023 – 31 December 2023) Daintree Ltd has $ 600000 ordinary share on issue. The company announced a 1-for-5 rights issue on 1 January 2023. The exercise price is $ 2 and the last date to exercise rights is 1 Aril 2023. The market price of one share immediately before exercise on 1 April 2023 was $ 3. At the end of the current reporting period, Daintree Ltd determined profit attributable to ordinary shareholders at $244650. Required: Determine the theoretical ex-rights value per share, the rights adjustment factor, and the basic earnings per share.

Answer rating: 100% (QA)

The theoretical exrights value per share is calculated as follows Theoretical exrig... View the full answer