Guys just want some clarification on the RCUIDS, hope some Sifus can shed some light on this;
I pay RM0.75 for RCUIDS I get 8% profit per year for 7 years (8% of RM0.75 is RM0.06 per year) After 7 years i get back; RM0.06 x 7 years = RM0.42
I am still short of RM0.33 (RM0.75 - RM0.42)
Let say I hold for 7 years (maximum tenure), I then convert to the mother share for a strike price of RM0.75 (Additional RM0.75, different from the RM0.75 I paid 7 years earlier for the RCUIDS), which means after 7 years I need the share price to be at least RM1.08 (RM0.75 + RM0.33) to breakeven*.
Is my understanding correct?
Note: "breakeven*" is not including any profit (if any) from the warrant
Stock: [CAPITALA]: CAPITAL A BERHAD
2021-07-21 14:01 | Report Abuse
Guys just want some clarification on the RCUIDS, hope some Sifus can shed some light on this;
I pay RM0.75 for RCUIDS
I get 8% profit per year for 7 years (8% of RM0.75 is RM0.06 per year)
After 7 years i get back; RM0.06 x 7 years = RM0.42
I am still short of RM0.33 (RM0.75 - RM0.42)
Let say I hold for 7 years (maximum tenure), I then convert to the mother share for a strike price of RM0.75 (Additional RM0.75, different from the RM0.75 I paid 7 years earlier for the RCUIDS), which means after 7 years I need the share price to be at least RM1.08 (RM0.75 + RM0.33) to breakeven*.
Is my understanding correct?
Note: "breakeven*" is not including any profit (if any) from the warrant