Question 1 (13 marks)

Capital Swimwear Ltd (CSL) completed a $53 million off- market share buy- back on 7 June 2019 with a buy- back price of $17.50 per share, comprising a $6.00 capital component and an $11.50 fully- franked component. In March, CSL also announced a DRP price of $21.51. In August 2019, CSL announced a share purchase plan under which, shareholders could apply for shares at $21.26. CSL's number of shares on issue prior to the buy- back was 261,255,052; 8,360,759 shares were bought back, 3,916,219 shares were issued under the DRP and 4,891,250 shares were issued pursuant to the share purchase plan. Show the theoretical impact on the share price of the off- market buy- back, DRP and SPP compared with the market price of $22.23 prior to the buy- back.