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At the beginning of the current reporting period (1 July 2019 30 June 2020) Winterhall Ltd has 600,000 ordinary shares on issue. The company announced
At the beginning of the current reporting period (1 July 2019 30 June 2020) Winterhall Ltd has 600,000 ordinary shares on issue. The company announced a one for three (one share for every three shares held) rights issue on 31 December 2019. The exercise price is $5.80 and the last date to exercise the rights is 1 March 2020. The market price of one share immediately before exercise on 1 March 2020 was $6.80. Required:Determine the theoretical ex-rights value per share (keep two decimal places and show all your workings)
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