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On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost...

On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost of R8 125. At that time, the company made a 1 for 25 rights issue at R2.50 per share and Jane decided to buy the shares to which she was entitled. What is the new base cost per share closest to, for capital gains tax purposes of Jane’s shareholding after the rights issue?

R2.50

R2.75

R3.25

R3.35

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Answer #1

Ans : Rs. 3.25 (being closest of Rs. 3.22)

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