Corporate actions · Question 12 of 12
In the same case (price 60 euros, new shares at 40 euros, ratio 4:1): to what price does the share fall arithmetically after the capital increase?
1 answer is correct. Hard
Show answer
Answer
- B 56 euros
Explanation
The theoretical ex-rights price weights four old shares at 60 euros and one new share at 40 euros: (4 × 60 + 40) / 5 = 56 euros. The difference from the old price, 4 euros, equals exactly the theoretical value of the subscription right. Anyone who sells the right instead of exercising it receives this value as compensation.