The Calculation of the Theoretical Ex-Rights Price of a Share

question 39

Multiple Choice

The calculation of the theoretical ex-rights price of a share may be expressed as:

• A) (Aggregate market price per share immediately prior to exercise of rights plus dividends receivable on the shares) divided by number of shares outstanding after the exercise of rights.
• B) (Aggregate market price per share immediately prior to exercise of rights plus proceeds from the exercise of rights) divided by number of shares outstanding after the exercise of rights.
• C) (Aggregate market price per share immediately after the exercise of rights plus proceeds from the exercise of rights) divided by number of shares outstanding before the exercise of rights.
• D) (Aggregate market price per share immediately after the exercise of rights plus proceeds from the exercise of rights) divided by number of shares outstanding after the exercise of rights.
• E) None of the given answers.

---

Definitions:

Informational Reports

Documents designed to convey data or information without the author's opinion, usually for the purpose of informing decision-making.

Common Goal

An objective or aim shared by a group of individuals or entities, fostering collaboration and unity.

Status Report

A document or update that provides detailed information on the current state of a project or task, focusing on what has been achieved and what still needs to be done.

Informational Document

A written or digital material that provides detailed data or knowledge about specific subjects or instructions.