Waec Model Questions Vol1 2022 Commerce Question 22

Practice objective / multiple choice question 22 from the 2022 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 22 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A company's shares are currently trading at ₦150 per share with 2 million shares outstanding. The company announces a 1‑for‑4 rights issue at a subscription price of ₦120 per share. Existing shareholders may subscribe in proportion to their holdings. The company also declares a dividend of ₦12 per share payable after the rights issue. If the net profit after the rights issue is expected to be ₦180 million, determine (a) the theoretical ex‑rights price per share, (b) the dividend yield based on that ex‑rights price, and (c) the new earnings per share.

Answer Options

A. (a) ₦144 per share; (b) 8.33 %; (c) ₦80 per share
B. (a) ₦150 per share; (b) 8.00 %; (c) ₦72 per share
Correct Answer C. (a) ₦144 per share; (b) 8.33 %; (c) ₦72 per share
D. (a) ₦144 per share; (b) 10.00 %; (c) ₦72 per share
Correct Answer
C
Correct Option:
(a) ₦144 per share; (b) 8.33 %; (c) ₦72 per share

About This Question

This is Waec Model Questions Vol1 2022 Commerce Question 22. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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