CHAPTER 6.2 REVISION The U.S based company Banana Energy Ltd has managed to convert banana peels into energy, with next-to-none carbon footprint. Banana Energy Ltd opts for pro rata rights issue to its current shareholders at a 2 for 6 basis. A) Calculate how many shares can be offered at a 3.50 USD issue price per share and at 3.85 USD market price. Show all steps of calculation. Its rival company Nuclear Mango Ltd has announced 0.33 USD per share dividend, payable in 1 month. At the same time Nuclear Mango Ltd has decided to capitalize reserves with a 1 for 3 bonus issue. The current share price at the close of business on the final cum- dividend date is 16.15 USD. Bi) Describe the strategy adopted by the company. Your response should include the terms 'ex-dividend' and 'cum-dividend. B ii) Calculate the theoretical price after the bonus issue per share and dividend payment. Show all steps of calculation. CHAPTER 6.2 REVISION The U.S based company Banana Energy Ltd has managed to convert banana peels into energy, with next-to-none carbon footprint. Banana Energy Ltd opts for pro rata rights issue to its current shareholders at a 2 for 6 basis. A) Calculate how many shares can be offered at a 3.50 USD issue price per share and at 3.85 USD market price. Show all steps of calculation. Its rival company Nuclear Mango Ltd has announced 0.33 USD per share dividend, payable in 1 month. At the same time Nuclear Mango Ltd has decided to capitalize reserves with a 1 for 3 bonus issue. The current share price at the close of business on the final cum- dividend date is 16.15 USD. Bi) Describe the strategy adopted by the company. Your response should include the terms 'ex-dividend' and 'cum-dividend. B ii) Calculate the theoretical price after the bonus issue per share and dividend payment. Show all steps of calculation