CRITICAL THINKING ASSIGNMENT A corporation is a legal business structure involving one or more individuals (owners) who are legally distinct (separate) from the business that is created under state laws. The owners of a corporation are called stockholders (or shareholders) and may or may not be employees of the corporation. Assuming that a business has been established successfully and operating for the past 5 years in Oman. The president, who is one of the shareholders, has created an innovative new product that is testing well with substantial demand. To begin manufacturing, OMR 1 Million additional capital is needed to acquire the equipment and expand the business. Assuming that the company came up with IPO by issuing 1 million shares at 20% premium. (Par value of shares OMR 1 each). The public subscribed all the shares and received all the money. Later the market value of share was OMR 2.500 per share. The company decided to offers a rights issue of 3 for 6 shares at an offer price of OMR 1.500. 90% of the offer was taken by the shareholders. After issuing a right

CRITICAL THINKING ASSIGNMENT A corporation is a legal business structure involving one or more individuals (owners) who are legally distinct (separate) from the business that is created under state laws. The owners of a corporation are called stockholders (or shareholders) and may or may not be employees of the corporation. Assuming that a business has been established successfully and operating for the past 5 years in Oman. The president, who is one of the shareholders, has created an innovative new product that is testing well with substantial demand. To begin manufacturing, OMR 1 Million additional capital is needed to acquire the equipment and expand the business. Assuming that the company came up with IPO by issuing 1 million shares at 20% premium. (Par value of shares OMR 1 each). The public subscribed all the shares and received all the money. Later the market value of share was OMR 2.500 per share. The company decided to offers a rights issue of 3 for 6 shares at an offer price of OMR 1.500. 90% of the offer was taken by the shareholders. After issuing a right

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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