9. The group company markets two shares for two different companies at a price of $50per share, one of the two shares is undervalued by $5 and the other is overvalued by $1,but you have no way of knowing which of the two shares is overvalued and which of thetwo shares is undervalued the Actual. You plan to buy 2,000 shares of each issue. If theissue is priced below the actual price, it would make sense that only half of the requiredstock would be sold out. If you were able to buy 2,000 shares of each company whatwould your profit be? And what profit did you actually expect? What is the principle thatyou Explain it

In a situation where the number of shares which can be bought is uncertain due to any reason like…

Answered: 9. The group company markets two shares…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wuttke Corp. wants to raise $4.8 million via a rights offering. The company currently has 580,000 shares of common stock outstanding that sell for $85 per share. Its underwriter has set a subscription price of $40 per share and will charge the company a spread of 6 percent. If you currently own 2,500 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights? Please answer fast I give you upvote.
National Grid PLC. (ticker: NGG) is currently trading at $59.11 per share. But youare bearish on the stock and believe that the price will fall to $56.32 in two weeks. Youdecide to short sell 100 shares. Your broker will charge 1.7% interest for lending shares toyou, independent of the length of the loan. You are required to pay the interest when youclose your short sale position. What is your expected investment outcome? A. $132.00 profitB. $178.51 profitC. $196.25 profitD. $210.00 profitE. $379.49 profit
36) can you please help with this question?
Mr. X has a limited cash balance of P1,000,000.00. (b) The buying price of the stock is P10 per share (c) Mr. X wants to purchase 150,000 shares (d) The broker wants to lend Mr. X the deficit in exchange of 3% simple interest per month. (e) the transaction cost in buying the shares is 0.10 per share Variable rate plus P20,000 Fixed rate. (f) On September 1, 2021, Mr. X purchased 150,000 shares at 10 per share. * Assuming on September 1, 2021, Mr. X purchased only 100,000 shares at 10.00 per share and sold the same stocks to Mr. Y at 9.80 per share. What is the net income/loss of Mr. X in selling the stocks to Mr. Y? (Transaction cost in buying and selling stocks is the same in the given data above).
Suppose that Kaka Plc currently is selling at $50 per share. You buy 900 shares using $22,050 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. Required If the maintenance margin is 20%, how low can Kaka Plc’s price fall before you get a margin call? (Round your answer to 2 decimal places.)
Please answer is 24840, only post if your answer comes this with explanation and concept. Thabks!
Ee 156.
You have a margin account and deposit Rs.90,000. Assuming the prevailing marginrequirement is 20%, commissions are ignored and D.G.K Cement stock is selling atRs.55 per share while Askari Cement stock is selling at Rs. 85 per share. You invest 40%of your investment in D.G.K cement while remaining is deposited in Askari cement.a. How many shares of each stock can you purchase using the maximum allowablemargin if you invest in both?b. What is your total and percentage profit (loss) if:1. the price of D.G.K Cement Rises to Rs.65 per share while Askari Cement stockrises to Rs. 97 per share?2. the price of D.G.K Cement reduces to Rs.42 per share while Askari Cementstock reduces to Rs. 76 per share?c. If you invest all money in D.G.K cement ONLY and the maintenance margin is 25%,to what price can D.G.K Cement stock fall before you will receive a margin call?d. If you invest all money in Askari cement ONLY and the maintenance margin is 25%,to what price can Askari cement stock fall before you…
If you place a stop-loss order to sell 500 shares of Nedbank at R130 when the current price is R135, how much will you receive for each share if the price drops to R127? a. Close to R127 ○ b. Close to R130 ○ c. Close to R135 d. Won't sell because the price is too low
Prahm Corp. wants to raise $4.7 million via a rights offering. The company currently has 530,000 shares of common stock outstanding that sell for $55 per share. Its underwriter has set a subscription price of $30 per share and will charge the company a spread of 6 percent. If you currently own 5,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Sale proceeds
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