Calculate the ex-rights price

Reference no: EM133322563

Question: Lesley Plc recently announced that it was going to acquire Jim Ltd and would finance the acquisition by means of a rights issue.

a) Lesley Plc offered 2 new shares for each existing 8 shares held at 150p. The existing shares traded at 200p.

Calculate the ex-rights price, the value of a right of a new share, the value of a right of an old share and the amount a holder of £2000 worth of shares could receive if the rights were sold. Also show that wealth is unaffected if the right is taken up or sold.

Reference no: EM133322563

Questions Cloud

Summarize symbolic interactionist perspective : Summarize the symbolic interactionist perspective and display all of the main components of the theory,

Describe in detail the 4 different types of legal systems : Define and describe in detail the 4 different types of legal systems covered in class and make a recommendation regarding which legal system Exxon Mobil should

Explain how the research and development expenditure : Explain how the research and development expenditure outlined above should be treated in the financial statements for the year to 31 July 2023

Challenges and failures and empty nest syndrome : Middle to late adulthood is a critical point in an individual's life because many struggle with midlife crisis, challenges and failures, empty nest syndrome,

Calculate the ex-rights price : Calculate the ex-rights price, the value of a right of a new share, the value of a right of an old share and the amount a holder of £2000 worth of shares could

List and describe at least two primary stakeholders involved : List and describe at least two primary stakeholders involved. (Remember that stakeholders are any groups that could be affected by a company's decisions.)

Explain and justify an investment : Apply your finance knowledge to explain and justify an investment, financing, and/or payout strategies related to this deal for Amazon and the impacts to Amazon

Explain did fitch commit any torts : What are Watson's options concerning resolving his claims through the court or ADR?Did Fitch commit any torts? Explain.

What educational psychology meant : At the beginning of the course, you defined what educational psychology meant to you and what you hoped to gain.

User Account

All Pages