A company needs to raise $40 million to finance a project.

CIMA F3 Question Answer

A company needs to raise $40 million to finance a project. It has decided on a right issue at a discount of 20% to its current market share price.

There are currently 20 million shares in issue with a nominal value of $1 and a market price of $10.00 per share.

1 new share for every 25 existing shares

1 new share for every 4 existing shares

1 new share for every 5 existing shares

1 new share for every 20 existing shares

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