May plc has 10 million ordinary shares in issue and its current market price is £8.00 per share. The company wishes to embark on a major expansion programme and, given its current high level of financial gearing, has decided to raise new equity of £4 million. The company is seeking your advice on a number of potential share issue methods:
(i) An rights issue at 25% discount to the current market price;
(ii) A deep discounted rights issue at 50% discount;
(iii) A placing of shares with institutions at 12 1⁄2% discount to the current market price.
Required:
a) Calculate the theoretical ex rights price under options (i) and (ii)

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step-by-step explanation:

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d. $180

step-by-step explanation:

if the dimensions of the room is 9ft by 12 ft, we have the area of the floor as,

so the area of the floor is 108 square feet, converting that into square yards we get,

the cost of carpet is $15 per square yard, therefore the cost of carpet for 12 square yards is,

hence, the cost of carpet is $180.

assuming the dimensions of the room be,

15 ft by 12 ft

so, the area of the floor of that room is,

we can convert 180 square feet into square yards, we know that,

1 sq ft = 0.111 sq yard

so, 180 square feet is,

so the area of floor is 20 square yards.

now, the cost of carpet is 15 dollars per square yard, therefore the cost of carpet for 20 square yards is,

so, it will cost $300.