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At the beginning of the current reporting period (1 July 2019 – 30 June 2020) Winterhall...

At the beginning of the current reporting period (1 July 2019 – 30 June 2020) Winterhall Ltd has 600,000 ordinary shares on issue. The company announced a one for three (one share for every three shares held) rights issue on 31 December 2019. The exercise price is $5.80 and the last date to exercise the rights is 1 March 2020. The market price of one share immediately before exercise on 1 March 2020 was $6.80. Required:Determine the theoretical ex-rights value per share (keep two decimal places and show all your workings)

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