What will be the ex-rights price

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Q1. Bashoil plc wants to raise £21m. Existing shares of Bashoil plc quoted at £3.10. The firm intends to raise funds through a one for three right issue price at £2.95. What will be the ex-rights price?

a. £3.06

b. £3.10

c. £2.95

d. £2.99

Q2. The annual demand for a part is 20,000 units a year. It costs £15 to place an order and £0.10 a year to hold a unit of stock. The Economic Order Quantity is:

a. 1235.44

b. 3235.44

c. 2449.49

d. 3449.49

Q3. Salavat plc issued a bond with a 7.5% coupon per annum, redeemable in 5 years at par £100, which was issued at a 3% premium to par value. What is the required rate of return for that bond?

a. 8.67%

b. 7.43%

c. 6.93%

d. 8.40%

Reference no: EM133026344

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