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How much can each right be sold for lpo limited

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Reference no: EM132963037

LPO Limited has 19 million ordinary shares outstanding which were originally issued at $2.16 but now trading at $49. Management is planning to raise extra share capital through a 1-for-3 renounceable rights issue at $39.

Problem a) Calculate the theoretical share price, to the nearest cent, following the rights issue.

Problem b) If an investor wishes to sell their rights rather than take up the offer, how much can each right be sold for, to the nearest cent?

Reference no: EM132963037

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