Bryan Ltd want to raise 10 million in a rights issue. They currently have 210 million shares

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Bryan Ltd want to raise £10 million in a rights issue. They currently have 210 million shares outstanding, originally issued at £1 each and now trading for £5.00. They want to have a one for three rights issue at £4 each.

a) How many total shares are outstanding after the issue?

b) What is the discount received on the rights issue in terms of pounds and as a percentage?

c) What is the Theoretical Ex-rights Price (TERP)?

d) John has 3,000 shares before the issue and will partake in the rights issue. Calculate the number of shares John will have after the issue.

Related Book For answer-question

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: Sep 12, 2023 05:58 AM

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Bryan Ltd want to raise 10 million in a rights issue. They currently have 210 million shares

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a How many total shares are outstanding after the issue The number of new shares to be issued is cal... View the full answer

Advanced Accounting

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