F3 Exam Dumps | A company plans to raise $12 million to finance an expansion project using a rights issue. Relevant data:

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Question 51/78

A company plans to raise $12 million to finance an expansion project using a rights issue.
Relevant data:
* Shares will be offered at a 20% discount to the present market price of $15.00 per share.
* There are currently 2 million shares in issue.
* The project is forecast to yield a positive NPV of $6 million.
What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?

A. $16.00

B. $14.00

C. $9.00

D. $11.00

Correct Answer: A

Explanation
Calc_Set3

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