In February 2021, Le Furibard carried out an issue of shares with subscription rights. Two new shares
Question:
In February 2021, Le Furibard carried out an issue of shares with subscription rights. Two new shares were to be issued at a price of A$0.28 for nine existing shares. Before the capital increase, the share was trading at A$0.73.
Calculate the theoretical value of the pre-emptive subscription right.
Calculate the theoretical ex-right price.
If you own 9,000 Le Furibard shares, what should you do before and after the capital increase so that your portfolio remains more or less as it is?
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Related Book For 
Corporate Finance Theory And Practice
ISBN: 9781119841623
6th Edition
Authors: Pascal Quiry, Yann Le Fur, Pierre Vernimmen
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