Question
On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost of R8 125. At that time, the company made
On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost of R8 125. At that time, the company made a 1 for 25 rights issue at R2.50 per share and Jane decided to buy the shares to which she was entitled. What is the new base cost per share closest to, for capital gains tax purposes of Janes shareholding after the rights issue?
R2.50
R2.75
R3.25
R3.35
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
6th Edition
003025809X, 978-3540014386
