The commonwealth bank of australia cba completed a 515


The commonwealth bank of Australia (CBA) completed a 515 million off-market share buyback on 29 March 2004 with a buyback price of $30.30 per share, comprising a $9.30 capital component and a $21 fully frank component. In March, the CBA also announced a DRP price of $34.57. In May 2004, the CBA announced a share purchase plan under which shareholder could apply for shares at $34.11. The CBA's number of shares on issue prior to the buyback was 1 244 773 254; 19 222 126 shares were bought back, 5 892 000 shares were issued under DRP and 14 670 137 shares were issued pursuant to the share purchase plan. Show the theoretical impact on the shares price of the off-market buyback, DRP and SPP compared with a market price of 35.78 prior to the buyback. What is the final share price?

 

 

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Electrical Engineering: The commonwealth bank of australia cba completed a 515
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