正确答案：(c) Rights issue price = 2·45 x 0·8 = ￡1·96Theoretical ex rights price = ((2 x 2·45) + (1 x 1·96))/3 = 6·86/3 = ￡2·29New shares issued = 20m x 1/2 = 10 millionFunds raised = 1·96 x 10m = ￡19·6 millionAfter issue costs of ￡300,000 funds raised will be ￡19·3 millionAnnual after-tax return generated by these funds = 19·3 x 0·09 = ￡1,737,000New earnings of Merton plc = 1,737,000 + 4,500,000 = ￡6,237,000New number of shares = 20m + 10m = 30 millionNew earnings per share = 100 x 6,237,000/30,000,000 = 20·79 penceNew share price = 20·79 x 12 = ￡2·49The weaknesses in this estimate are that the predicted return on investment of 9% may or may not be achieved: the priceearningsratio depends on the post investment share price, rather than the post investment share price depending on theprice-earnings ratio; the current earnings seem to be declining and this share price estimate assumes they remain constant;in fact current earnings are likely to decline because the overdraft and annual interest are increasing but operating profit isfalling.Expected gearing = 38/(60 + 19·3) = 47·9% compared to current gearing of 63%.Including the overdraft, expected gearing = 46/(60 + 19·3) = 58% compared to 77%.The gearing is predictably lower, but if the overdraft is included in the calculation the gearing of the company is still higherthan the sector average. The positive effect on financial risk could have a positive effect on the company’s share price, butthis is by no means certain.