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1) A company's share price stands at 20. The company has 20m shares in issue and the nominal value per share is 5. The company

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1) A company's share price stands at 20. The company has 20m shares in issue and the nominal value per share is 5. The company intends to capitalize 100m of reserves by a scrip issue and then to make a 1 for 2 rights issue at 7 per share. Calculate the theoretical price of the share after both the scrip issue and the rights issue? A. 8.50 B. 8.00 C. 9.00 D. 9.67 [4 marks]

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