(a) Describe what it means if a new company decides to issue its ordinary shares to investors in instalments, and why they might sell shares this way.
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(a) Describe what it means if a new company decides to issue its ordinary shares to investors in instalments, and why they might sell shares this way.
(b) John’s Building Company needs to raise $100,000 cash from share investors and asks for your advice for designing the sale of the shares. He wants to sell ordinary shares.
First, use your imagination to determine a reasonable sale price per share.
Then, design a traditional 3 step instalment plan for collection of the cash from investors.
Hint: you may consider that the Application period will commence on 1st February 2022.
Outline the basic details of your plan, including beginning and ending dates for each stage of your plan.
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- Give typing answer with explanation and conclusion 1. To incentivize our employees, we are considering issuing them employee equity. The average employee would be issued stock options to purchase 800 shares at our current stock price of $210 per share. We are hopeful that the Smoothie business will catapult us to $230 per share in the future but recognize the risks. If an employee exercises the options at $210 per share, how much would the employee make before taxes?John wants to invest in shares and is trying to decide between two companies(Company A and Company B) in the same industry. After doing his research henotes the following about the two companies:Measure Company A Company BShare Price $10 $15Earnings Per Share $1 $1Dividend $0.50 $1PE Ratio 10 15Dividend Yield 5% 7% Having critically examined the five measures, John decided to purchase 1.5mshares in Company B. At the time when John purchased the shares, the value ofthe equity shares was $3m and the par value was $0.40.Required:a. Explain how each of the measures identified by John could help him in decidingon which company’s shares to buy.b. How did the stock market help John to purchase the shares in Company Bc. Calculate John’s shareholding in Company B and the cost on his investment?d.. What are the benefits John obtains by being a…Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares 120,000 200,000 560,000 1,200,000 1,240,000 800,000 400,000 Price $14.60 14.40 14.20 14.00 13.80 13.60 13.40 Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be? The price will be $ per share. (Round to two decimal places.)
