Hi yall, i came across this question and couldnt figure out how the correct answer for Rights issue is $22000.
In my calculation:
1. number of old shares : $440,000/2 = 220,000shares
2. number of new shares to be issued : 110,000 shares
3. value of rights share : 110,000 x [imath]2 =[/imath]220,000 share capital ↑ ; 110,000 x [imath]o.75=[/imath]75000 Share premium ↑
In my calculation:
1. number of old shares : $440,000/2 = 220,000shares
2. number of new shares to be issued : 110,000 shares
3. value of rights share : 110,000 x [imath]2 =[/imath]220,000 share capital ↑ ; 110,000 x [imath]o.75=[/imath]75000 Share premium ↑
