I need answer of this question solution general accounting Convex Incorporated sells 10 million shares of stock in an SEOlong dash, 44 million being primary shares issued by thecompany and 66 million being secondary shares sold byinvestors. At the time of the sale, Convex's stock was sellingat $9.0 per share. How much money was raised in the sale ifthe underwriter charges 66% of the gross proceeds as a fee?

Case -2If Total should be 110 million The total number of primary shares being sold = 44 million…

Answered: Convex Incorporated sells 10 million…

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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on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.
what journal entry would be made for the following transaction? highway studios sells 10 million of its no-par common shares for $10 per share.
Ladd, Inc., bought 400 shares of Dey, LLC, for $20 per share and incurred brokerage commissions of $100. Ladd later sold its stake in Dey for $22 per share and incurred brokerage commissions of $175. The effect of the sale on Ladd's net income is a(n) (increase/decrease) of $ .
Kenny Limited's issued share capital is £125,000 made up of 250,000 ordinary shares of £0.50 each. In the year to 31 October 2020, Kenny Limited makes the following profits: Profit before tax: £95,000 Profit for the year: £70,000 Kenny Limited has no preference shares in issue. What are the earnings per share of Kenny Limited for the year ended 31 October 2020?
Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, theinvestee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?
ABC purchases 118 shares of XYZ company at $38 per share in its margin account. ABC finances part of the purchase by borrowing $1967 at a rate of 9% per year. One year later the price of XYZ shares has changed by 22%. Therefore the return earned by ABC in its marging account is % (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 110.10)
Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.
2) Andrew bought 10,000 shares of stock B at $2 per share. At the end of the year, he sold all the shares at $2.50 per share. The transactions payable for share transactions in Singapore are: Clearing fee Trading access fee Brokerage commission 0.0325% 0.0075% 0.2800% In addition to the above cost, Andrew has to pay GST of 7% on the total transaction cost (i.e. sum of clearing fee, trading access fee and brokerage commission). Calculate Andrew's profits in dollars and return.
On January 20, Metropolitan Inc., sold 10 million shares of stock in an SEO. The market price of Metropolitan at the time was $42.25 per share. Of the 10 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.6% of the gross proceeds as an underwriting fee. a. How much money did Metropolitan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 2.5% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive? a. How much money did Metropolitan raise? After underwriting fees, Metropolitan raised $ million. (Round to two decimal places.)
On January 20, Sullivan Inc., sold 10 million shares of stock in an SEO. The market price of Sullivan at the time was $40.25 per share. Of the 10 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 6 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.5% of the gross proceeds as an underwriting fee. a. How much money did Sullivan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 2.7% on the announcement of the SEO and the new shares were sold at that price, how much money would Sullivan receive?
On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee. Required: Prepare the journal entries for the original purchase, dividend, and sale. If an amount box does not require an entry, leave it blank. Feb. 12 Aug. 22 Nov. 10

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