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2. At 31 December 2020 a company's capital structure was as follows: (5 Marks) Ordinary share capital consisting of shares with face value of
2. At 31 December 2020 a company's capital structure was as follows: (5 Marks) Ordinary share capital consisting of shares with face value of RO 0.500 each - RO 5,000,000 . Share Premium RO 300,000 Revaluation Reserve RO 160,000 Capital Reserve RO 80,000 Retained Profits RO 1,200,000 The company came up with a right issue in Jan 2021 in the ratio of 2:10 at an issue price of OMR 4, whereas the market value of shares is OMR 6.000. 20% of shareholders have rejected this offer. In June, 2021 the company declared a bonus issue in the ratio of 1:5. Journalize the following transactions and show the working along with the abstract of SOFP only the equity part. Also calculate the theoretical ex right price.
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