(b) Mark plc. is proposing a "one-for-five" rights issue. The market price of the share is expected to be 320 pence afte
Posted: Wed May 18, 2022 11:37 pm
- B Mark Plc Is Proposing A One For Five Rights Issue The Market Price Of The Share Is Expected To Be 320 Pence Afte 1 (9.79 KiB) Viewed 36 times
- B Mark Plc Is Proposing A One For Five Rights Issue The Market Price Of The Share Is Expected To Be 320 Pence Afte 2 (6.06 KiB) Viewed 36 times
(b) Mark plc. is proposing a "one-for-five" rights issue. The market price of the share is expected to be 320 pence after the rights issue. what must be the discounted price of a newly issued share? Given the current market price of the share is 360 pence. [5 marks]
[5 marks] (e) A financial claim offers annual payment of £500 in perpetuity to investors. If the current market price of this financial claim is £8,000, calculate the appropriate discount rate to this financial claim? Assuming this financial claim is priced fairly.