Question

An investor holds 5 000 shares of VC Ltd, which was bought for R18 per share and is now priced at R20 per share. VC Ltd makes a 2-for-3 rights issue at R15.80. The investor decides not to subscribe to the rights issue and purchases a further 3 000 shares. Calculate the nil-paid rights, the capital gain that the investor may secure by selling the rights. R4.20

R2.20

R2.63

R1.38

Answer 1

The answer is 2.20

Which came out from 4.20 -2.2

The company purchased the shares at 18 per share snd now it is 20 per share

Here the investor has 2 rupee gain