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You are provided with the information below. Calculate the theoretical ex-rights price (TERP). Number of shares in issue = 1 000 000 Current market price

You are provided with the information below. Calculate the theoretical ex-rights price (TERP). Number of shares in issue = 1 000 000 Current market price of shares = R7.00 Amount required for new investment = R6 000 000 A rights issue of 1 for 5 will take place at an issue price of R5.00 Question 7 Answer a. R5.00 b. R8.00 c. R6.67 d. R6.50

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