Sevran SA, which had 1,200,000 shares, makes a rights issue: one new share for two held, at 6.00. The fair value of all the shares before the exercise of the rights is 14,400,000 (in euros), that is a price of 12 per share before the rights are detached; the proceeds of the issue are 3,600,000 and there are 1,800,000 units shares after the issue. Calculate the theoretical ex-rights value of one share, then the retrospective adjustment factor.
- Fair value of all shares before the exercise
- 14,400,000
- Proceeds of the rights issue
- 3,600,000
- Shares after the issue
- 1,800,000
- Price before the rights are detached
- 12