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A company has recently announced a scrip issue of 1 new share for every 4...

A company has recently announced a scrip issue of 1 new share for every 4 existing shares. The market value of each share price before the announcement was $20.00.

What is the best estimate of the share price after the scrip issue ignoring all other influences on the share price?

A.

$40 00

B.

$25 00

C.

$16 00

D.

$20 00

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