Koppen Ltd Has Just Raised $1 Billion by an Issue

question 8

Multiple Choice

Koppen Ltd has just raised $1 billion by an issue of converting preference shares on the following terms:
An investor,W.Street,currently owns 500 000 Koppen Ltd CPS.If the ordinary share price immediately prior to conversion is expected to be $2.00 per share,calculate the number of ordinary shares that W.Street expects to receive on conversion.

• A)625 000 ordinary shares.
• B)6 250 000 ordinary shares.
• C)12 500 000 ordinary shares.
• D)1 250 000 ordinary shares.

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Definitions:

Projective Tests

Psychological assessments that use ambiguous stimuli to elicit responses that may reveal facets of an individual's personality, conflicts, or psychological conditions.

Jung's Personality Theory

A psychological framework positing that the human psyche is made up of the ego, personal unconscious, and collective unconscious, along with archetypes.

Archetypes

Universally recognized symbols, themes, or characters that recur across cultures and literature, often embodying fundamental human experiences.

Unconscious Parts

Elements of the mind that are not within conscious awareness but influence judgments, feelings, or behavior.