Exam F3 Topic 2 Question 425 Discussion
Actual exam question for CIMA's F3 exam
Question #: 425
Topic #: 2
Question #: 425
Topic #: 2
An all equity financed company plans an issue of new ordinary shares to the general public to raise finance for a new project
The following data applies:
* 10 million ordinary shares are currently in issue with a market value of S3 each share
* The new project will cost S2.88 million and is expected to give a positive NPV of S1 million
* The issue will be priced at a AaA discount to the current share price.
What gam or loss per share will accrue to the existing shareholders?
The following data applies:
* 10 million ordinary shares are currently in issue with a market value of S3 each share
* The new project will cost S2.88 million and is expected to give a positive NPV of S1 million
* The issue will be priced at a AaA discount to the current share price.
What gam or loss per share will accrue to the existing shareholders?
Suggested Answer: D Vote an answer
by Isaac at Jun 17, 2025, 08:07 PM
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