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Today is 21 May (Thur), and following is the real-time quotation of Stock A listed on HKEX. LOT SIZE: 500 OPEN: $3.22 BID: $3.38 ASK:
Today is 21 May (Thur), and following is the real-time quotation of Stock A listed on HKEX. LOT SIZE: 500 OPEN: $3.22 BID: $3.38 ASK: $3.40 LAST: $3.39 CHG: -$0.14 EPS: $0.25 MKT CAP: 22.3 b (a) What was the closing price of Stock A on the previous trading day? (3 marks) (b) Based on the latest transaction price, compute the P/E of Stock A. (3 marks) (c) If you want to purchase Stock A immediately, what is the price that you should set in your buy order? (2 marks) (d) After your purchase in (c), when will you become the legal owner of Stock A? (2 marks) (e) Company A just announced a 1-for-2 rights issue at 35% discount of its latest transaction price. Suppose you hold 6 lots of Stock A. If you want to exercise your rights entitlement in full, how much money do you need (excluding all transaction fees)? (4 marks)
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