Question 6 (2 marks)

Beta Ltd (all equity financed) with 50.000 1NV shares makes a 1:5 rights issue at 3.00

followed by a 2:5 bonus issue. Pre issues share prices were 4.12 per share, so post issues

prices are nearest:

A. 2.81; B.2.72;

C. 3.38; D. None on these;

Could you please show your working and explain how you arrived to this solution. thank you

Question 6 (2 marks) Beta Ltd (all equity financed) with 50,000 1NV shares makes a 1:5 rights issue at 3.00 followed by a 2:5 bonus issue. Pre issues share prices were 4.12 per share, so post issues prices are nearest: A. 2.81; B. 2.72; C. 3.38; D. None on these