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Larfage needs to find new funds of 1.28 million euros. The current share price is €...

Larfage needs to find new funds of 1.28 million euros. The current share price is € 60 per share. Larfaz decided to raise the additional funds by increasing its share capital by issuing shares, 1 new for 17 old ones with a price of 41 € per share. If we assume 100% participation, find:
1) the funds that will be drawn and the number of new shares after the share capital increase.
2) the number of shares that exist before the share capital increase and the capitalization before the share capital increase.
3) the total number of shares in circulation after the share capital increase.
4) what is the price of each right.

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Answer #1

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The main task in the question was the calculation of value of right.

Please concentrate mainly on that point

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