I'm trying to figure out how to calculate the ex-rights price. I need to understand the formula or method used to determine this price, which takes into account adjustments made after a company issues new shares or rights to existing shareholders.
5 answers
Ilaria
Thu Nov 07 2024
Estimating the theoretical ex-rights price involves a straightforward calculation.
CryptoKing
Thu Nov 07 2024
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Tommaso
Thu Nov 07 2024
To begin, one must consider the current market value of all shares prior to the rights issue.
HanjiHandiwork
Thu Nov 07 2024
Additionally, the funds raised through the sales of the rights issue must be factored in.
CryptoAlly
Thu Nov 07 2024
Combining these two components allows for a rough approximation of the theoretical ex-rights price.