Question: QUESTION 5 and 10 are based on the following information Nealofar Berhad plans to raise RMSOO million from a rights issue that will mainly be

mainly be used to fund a new business segment. Nealolat will issue

50 milion new shares at a subscription price of RM10 per shite,

30 percent of the proceed from the rights offering will be used

to dewlop a new erwironmentally friendly factory, while rest will used for

QUESTION 5 and 10 are based on the following information Nealofar Berhad plans to raise RMSOO million from a rights issue that will mainly be used to fund a new business segment. Nealolat will issue 50 milion new shares at a subscription price of RM10 per shite, 30 percent of the proceed from the rights offering will be used to dewlop a new erwironmentally friendly factory, while rest will used for working capital and equipment lease payments. Neulotar's shares are currently trading at RM20 each. Company recorded an income after tax charge of RM40 million Below is the partial culty account of Nealofar Berhad Partial Ecuity Account for himlofar Berhad (RAM) Common Stock RM1 Premium 50.000.000 800.000.000 Preferred Stock 200.000.000 Retired Earnings 400,000,000 Total Equity 1.450,000,000 #15 What is the number of rights needed to purchase one (1) new share? Answer 50 16 1.6 o 10 #16 The ex-rights price of the stock Answer RM9.41 RM36.71 RM38.24 RM36.36 #17 The ex-rights value Answer RM1.55 RM2.44 RM.57 RM1.77 #18 How much is the total common stock value? Answer RM810,000,000 O RM812,000,000 RM850,000,000 RM800,000,000 #19 How much is the total premium value? Answer RM450,000,000 RM500,000,000 RM360,000,000 RM1,950,000,000

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