Compute amount of new investment

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Reference no: EM1358787

Associated Breweries is planning to market unleaded beer. The finance the venture, it proposes to make a right issue with a subscription price of 10.00 One new share can be purchased for each two shares held. The company currently has outstanding 100,000 shares priced at 40.00 a share. Assuming that the new money is invested to earn a fair return give values for the:

1. number of shares, 2. amount of new investment, 3. total value of company after issue, 4. total number of shares after issue and 5. share price after the issue

Reference no: EM1358787

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