About this document
Right Issue Calculation Guide by Uang Reza is a document available to read on EtoBox.
This document provides a calculator to determine the theoretical ex-rights price (TERP) of shares based on the rights issue ratio and share prices. It calculates the TERP as (old shares x current price + new shares x rights issue price) / total shares. For a sample with a rights ratio of 2 new for 5 old shares, share price of IDR500 and rights issue price of IDR250, it calculates the TERP as IDR428.57. It then outlines the potential profits from buying and selling the rights versus just selling the rights.
- Author
- Uang Reza
- Language
- EN