CIMA Exam CIMAPRA19-F03-1 Topic 4 Question 112 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 112
Topic #: 4

[All CIMAPRA19-F03-1 Questions]

A company plans to raise $12 millionto finance an expansion project using a rights issue.

Relevant data:

* Shares will be offered at a 20% discountto the present market price of $15.00 per share.

* There are currently 2 million shares in issue.

* The project is forecast to yield a positive NPV of $6 million.

What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?

A$16.00

B$14.00

C$9.00

D$11.00

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Suggested Answer: A

Calc_Set3

by Leigha at Jul 05, 2025, 10:08 AM

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6 days ago

This question is a classic in corporate finance! I'm pretty sure the answer is B) $14.00.

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10 days ago

I think the answer is A) $16.00

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