CIMA F3 Question Answer
A company wishes to raise new finance using a rights issue. The following data applies:
• There are 20 million shares in issue with a market value of $6 each
• The terms of the rights will be 1 new share for 4 existing shares held
• After the rights issue, the theoretical ex-rights price (TERP) will be $5.75
Assuming all shareholders take up their rights, how much new finance will be raised ?
Give your answer to one decimal place.
$ ? million
CIMA F3 Summary
- Vendor: CIMA
- Product: F3
- Update on: Dec 27, 2025
- Questions: 393
