In this workout, we're asked to review the rights issue, prospectus excerpt, and identify the issue, price and conversion ratio.

It then says, use the additional information provided to calculate the issue, price discounts on the announcement dates and total expected proceeds from the rights issue.

So four things we need to do.

Let's identify those first two, the issue price, and the conversion ratio.

If we have a quick look at this prospectus, the first thing we see down at the bottom there is the right issue price, and we're told that's going to be 32 pence.

The second thing was the conversion ratio, and it's just above.

It says there'll be 10 new ordinary shares for every three existing ordinary shares.

So that's the first two requirements done.

The next two requirements, we were asked to calculate the issue, price discounts and the total expected proceeds. Let's scroll down a little bit.

We've been given some extra information.

We're told issuance fees are 80 and the closing price on the day before the announcement was one pound and 30 pence.

Let's put that issue price in here. NS 0.32.

So 32 pence, and we've already got the conversion ratio in here, the new shares, it was 10 for every three existing.

Let's calculate that conversion ratio per one share, and it's 3.3 new shares for every one share.

Now, you can't buy a fraction of a share in the real world, but for a conversion ratio, this is how we do it.

Now, the next thing we need is the ordinary shares in issue already.

That's up near the top of the prospectus.

Ordinary shares in issue.

It was 1,000,000,930 billion, et cetera.

So let's type that in. 1,930 spots 9 9 5 3 1 3.

Now onto that third requirements the issue price discounts.

Well, the issue price discount means I need to put my new price divided by the old price, and then I'll subtract one, and that shows me a discount of 75.4% on the current existing share price.

Wow, quite a drop.

I want that to be shown as a positive, so I'm gonna have to change it from its currently negative form to a positive by putting a minus sign at the beginning.

Now, let's calculate the new shares to be issued.

We have 1,931, but I know there's gonna be 3.3 times that new shares being issued, giving us 6436.7 shares, and we've revealed some of our formulas there.

Now that I've got those new shares, I can work out my expected proceeds.

The expected proceeds are going to be those 6436.7 new shares multiplied by the issue price of 32 pence.

But remember, we still need to pay those issuance fees as well.

So the expected proceeds 1979.7 to put that in context, that's 1,979 million pounds.