微信扫一扫
实时资讯全掌握
Bandy Jing Co is financed entirely by issued share capital of 8 million ordinary shares of 50 cents each nominal value. Their market price is currently $1.50 per share just prior to a 1 for 4 rights issue at $1 per share. The finance raised will be invested immediately in a project that has an expected net present value of + $3 million. What are the best estimates of the likely share price after the rights issue if the market shows: (1) weak form efficiency and, (2) strong form efficiency with the expected NPV of the project known and believed by investors? A. Weak form efficiency = $1.40 ; Strong form efficiency = $1.70 B. Weak form efficiency = $1.40 ; Strong form efficiency = $1.50 C. Weak form efficiency = $1.50 ; Strong form efficiency = $1.70 D. Weak form efficiency = $1.50 ; Strong form efficiency = $1.50 |