Dill Owns Five Per Cent of the Outstanding Shares in Pickle

question 36

Multiple Choice

Dill owns five per cent of the outstanding shares in Pickle Ltd,which has just announced a one for five rights issue with a subscription price of $1.90.The current 'cum rights' price for Pickle shares is $2.20.The number of outstanding shares in Pickle Ltd is 5000.Calculate the value of Dill's investment ex-rights.

• A)$537.50
• B)$645.00
• C)$550.00
• D)$615.00

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Definitions:

Equilibrium

A state of balance or stability within a system, achieved when competing forces or influences are equal or in correct proportion.

Stable

Characterized by consistency, lacking in significant change or fluctuation, and maintaining equilibrium.

Generalist Intervention Model

A social work practice model that provides a framework for intervention involving assessment, planning, implementation, evaluation, and advocacy.

Accountability

The obligation of an individual, group, or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.