Theoretical ex-rights price: Difference between revisions
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imported>Doug Williamson (Create the page. Source: ACT CFF Reading 5.1.4 page 1, 1 October 2011.) |
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Revision as of 10:39, 16 March 2014
(TERPS).
The theoretical price to which a company's shares are expected to change, following a rights issue.
The theoretical price is based on the assumption that the total value of the company's equity will increase by exactly the amount of cash subscribed by the shareholders, and neither more nor less.
Also known as the Theoretical post-rights price.
