FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required:
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(a)Assuming a rights issue of shares is made, calculate:
(i)the theoretical ex-rights price of an ordinary share in Devonian plc
(ii)the value of the rights for each original ordinary share.
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(b)Calculate the price of an ordinary share in Devonian plc in one year’s time assuming:
(i)a rights issue is made
(ii)a loan issue is made.
Comment on your findings.
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