Calculate the value of a right given the following information: 4 of rights to buy one share; subscription price of $12:$32 common share price during the rights-on period. O a $4.50 Ob. $4.00 OC. $3.50 Od. $5.50 Oe. $5.00 4

Calculate the value of a right given the following information: 4 of rights to buy one share; subscription price of $12:$32 common share price during the rights-on period. O a $4.50 Ob. $4.00 OC. $3.50 Od. $5.50 Oe. $5.00 4

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q6. Please calculate the fully diluted shares outstanding using the Net Settlement approach based on assumptions below. ( Assumptions Current Share Price $40.00 Convert Debt Amount Outstanding (Smil.) $500.00 Conversion Price $30.00 Basic Shares Outstanding (mil.) 10 OA. 11.67 O B. 12.50 OC. 10.00 OD. 14.17
14. Laursen plc has announced a 1 for 3 rights issue at a subscription price of £2. The current price of the shares is £3.04. What is the theoretical value of the right per existing share? a. £0.78 b. £0.35 c. £0.26 d. £2.78
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Answer and explain with computation Company's issued 20,000 share capital receiving land with fair value of P500,000. If the share capital is no par and no stated value and the cost of the land is P200,000, how much in the legal capital? A. P-0 b. P200,000 c. P300,000 d. P500,000
Question #5 please!
pls help and if needed, provide supporting computations
Consider the following information about Firm A and Firm T: Item Firm A (Acquiring firm) Firm T (Target firm) Price per share $20 $15 Outstanding shares 50 25 Total market value $1000.00 $375 Total cost of the acquisition is $500.00 and the merger is estimated to create a synergistic gain of $700.00. What is the NPV of the acquisition to firm A? Select one: a. $1075.00 b. $575.00 c. $425.00 d. $555.00
q16
Question 2The following Trial Balance is extracted from the books of FW Sdn Bhd as at31 December 20X1:Trial Balance as at 31 December 20X1 Dr CrRM RM20,000 non-redeemable Preference share capital 20,00070,000 Ordinary share capital 70,00010% debentures (repayable 20X8) 30,000Building at cost 110,500Equipment at cost 8,000Motor vehicles at cost 17,200Accumulated depreciation : equipment 1.1.20X1 2,400Accumulated depreciation : motors 1.1.20X1 5,160Inventories 22,690Sales 98,200Purchases 53,910Carriage inwards 1,620Salaries & wages 9,240Directors’ remuneration 6,300Motor expenses 8,120Rates & insurances 2,930General expenses 560Debenture interest 1,500Trade Receivables 18,610Trade Payables 11,370Cash at Bank 8,390General reserve 19,000Interim ordinary dividend paid 3,500Retained earnings: 31.12.20X0 16,940273,070 273,070 The following adjustments are needed:(i) Inventories at 31.12.20X1 were RM27,220.(ii) Depreciation of motor vehicles RM3,000 and equipment RM1,200.(iii)Accrued…
Required: (a)Assuming a rights issue of shares is made, calculate: (i)the theoretical ex-rights price of an ordinary share in Devonian plc (ii)the value of the rights for each original ordinary share. (b)Calculate the price of an ordinary share in Devonian plc in one year’s time assuming: (i)a rights issue is made (ii)a loan issue is made. Comment on your findings.

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