Theoretical exrights value LO3 Kelso Ltd has 30 000 ordinary shares on issue. The company

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Theoretical ex‐rights value   LO3 Kelso Ltd has 30 000 ordinary shares on issue. The company announced a 1‐for‐3 rights issue with an exercise price of $4 for each right. The market price of one ordinary share immediately before the exercise of the rights was $6. Required Determine the theoretical ex‐rights value per share.

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Financial Reporting

ISBN: 978-0730363361

2nd Edition

Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes

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