Gce Model Questions Vol1 2025 Commerce Question 11

Practice objective / multiple choice question 11 from the 2025 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2025 Commerce Objective / Multiple Choice Hard Difficulty
Question 11 GCE_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

Company X has \(2,000,000\) shares trading at \(£12\) each. It announces a \(1\text{-for-}4\) rights issue at a subscription price of \(£8\) per new share. Rights are quoted at \(£2.5\). Determine the theoretical ex‑rights price per share and the total amount of new capital that will be raised.

Answer Options

A. £12.00 per share; £5,000,000
B. £9.60 per share; £2,400,000
C. £10.80 per share; £3,200,000
Correct Answer D. £11.20 per share; £4,000,000
Correct Answer
D
Correct Option:
£11.20 per share; £4,000,000

About This Question

This is Gce Model Questions Vol1 2025 Commerce Question 11. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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