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Business finance > Rights offering and Payout policy > Flashcards

Rights offering and Payout policy Flashcards

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1
Q

Deep discount

A

A deep discount is a discount offered on market price to encourage investor to take up their full rights

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2
Q

Advantages of a deep discount

A

-Does not reduce EPS
-Encourages investors to participate
-By setting Ps low the value of the right will always be positive

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Business finance (6 decks)

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