Jason Bond plc has 40 million ordinary shares of 100p each in issue. These shares are listed on the stock exchange at 160p. The directors of the company require additional long-term capital and have decided to make a one-for-four rights issue at 120p per share. An investor with 4,000 shares in Jason Bond plc has contacted you for investment advice. She is undecided whether to take up the rights issue, sell the rights, or allow the rights offer to lapse. She also informs you that she has savings of £10,000 in the bank. Please do not use £ or any other currency denomination. Just input you answer as a numerical figure without decimal places. Please do not use the ‘ separator or the ‘ as a decimal place. Just input you answer as a numerical figure without decimal places. Please do not use p (pence). Just input you answer as a numerical figure without decimal places. Questions: Calculate the market capitalisation(value) of the company before the rights issue? Answer Calculate the number of new shares issued if all the rights are taken up? Answer Calculate the market capitalisation (value) after the rights issue?
Jason Bond plc has 40 million ordinary shares of 100p each in issue. These shares are listed on the stock exchange at 160p. The directors of the company require additional long-term capital and have decided to make a one-for-four rights issue at 120p per share.
An investor with 4,000 shares in Jason Bond plc has contacted you for investment advice. She is undecided whether to take up the rights issue, sell the rights, or allow the rights offer to lapse. She also informs you that she has savings of £10,000 in the bank.
Please do not use £ or any other currency denomination. Just input you answer as a numerical figure without decimal places.
Please do not use the ‘ separator or the ‘ as a decimal place. Just input you answer as a numerical figure without decimal places.
Please do not use p (pence). Just input you answer as a numerical figure without decimal places.
Questions:
Calculate the market capitalisation(value) of the company before the rights issue? Answer
Calculate the number of new shares issued if all the rights are taken up? Answer
Calculate the market capitalisation (value) after the rights issue?
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