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Jamma plc is in the process of making a rights issue. The company presently has...

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Finance

Jamma plc is in the process of making a rights issue. The company presently has 2m shares in issue. The current market price is 3.00 per share. The terms of the issue give each shareholder the right to buy one new share for every five previously held. Each new share will cost 2.40. A. Calculate the theoretical share price after the rights issue; and B. Explain why the actual price might vary from the price calculated

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