Dill Owns Five Per Cent of the Outstanding Shares in Pickle

question 8

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.If the number of outstanding shares in Pickle Ltd is 5000,what is the theoretical value of the right to one new share?

• A)$0.05
• B)$0.25
• C)$0.30
• D)$0.45

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Definitions:

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, also known as the collarbone.

Coronoid Process

A protrusion on the upper end of the ulna, a bone in the forearm, which serves as an attachment point for muscles.

Mental Foramen

An opening in the jaw bone through which blood vessels and nerves pass, usually located near the lower premolars.

Ramus

The term ramus typically refers to a branch or a part of a bone that extends out from the main body of the bone, often creating a connection with other structures.