Company Badr has in issue 500,000 RO 1 equity shares with a current market value of RO 3.5 each. It also has a balance of RO 90,000 in its share premium account and RO 100,000 in its bank account before such issue. It offers a rights issue of 3 for 5 shares at an offer price of RO 2.800. The offer is only taken by 65% of Shareholders. The Theoretical ex-Rights price will be:

a.

RO 3.43

b.

RO 3.23

c.

RO 3.53

d.

RO 3.30

Answer rating: 100% (QA)

ANSWER dRO 330 EXPLANATION First let us know the number of shares offered 500000 existing shar... View the full answer