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() Calulate the theoretial ex;ri'hts share prie%
cum-rights share price 2(.&0
>arket value of 10 cum-rights shares 2(&.00
plus?
ne# cash introduced through take-up of 3 for 10 issue 222.3$
gives?
market value of 13 ex-rights shares 2,+.3$
therefore?
theoretical ex-rights share price 2(.$&$!
(d) Explain !hy an atual ex;ri'hts prie o" a share may at times di""er "rom the alulated
theoretial prie% (/3 6%,)
/he ex-rights price may not fall to its theoretical value because of the informational content of
the rights issue. /he increased e)uity base may indicate increased gro#th and profitability thus
allo#ing the company to maintain its current dividend rate.
0,% <.) Indies mana'es a 'lobal industry lassi"iation standard (?IC<) "or share;
market industry setor indies% The standard omprises 0- international industry setor
indies% (/3 6%6)
(a) What is the purpose o" share;market indies#
" stock market index provides a )uantitative measure of the performance of a share market, or
an industry sector #ithin the market.
4hanges in an index over time reflects the mood of the market8bull market or a bear market.
(b) @o! does the existene o" standard international industry setor indies "ailitate 'lobal
investment#
Passive funds managers in local and international markets #ill replicate a selected index for an
investment portfolio in order to obtain a return e)ual to stocks incorporated in that index.
() Identi"y and brie"ly explain the struture o" the ?IC< indies%
1lobal industry classification standard 31I4%5 comprises 10 standard international industry
sectors?
o energy
o materials
o industrials
o consumer discretionary
o consumer staples
o health care
o financials
o information technology
o telecommunication services
o utilities
In addition, a country may add further sectors that recognise particular strengths #ithin that
market= for example, "ustralia has further sector classifications for financial excluding property
trusts, and property trusts.