Lime inc. is currently keeping a constant debt policy with a perpetual debt amount of 100,000,00, interest rate of 4.35%, value of levered assets of 243,000,000 and an expected return on levered equity equal to 12.35%. The company has 500,000 shares outstanding. The company announces a right issuance: current shareholders can subscribe three new shares for every two shares they own at an issuance price of 213. Assuming a Lime’s shareholder has a right for each new share issued, what is the value of a right?
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Lime inc. is currently keeping a constant debt policy with a perpetual debt amount of 100,000,00, interest rate of 4.35%, value of levered assets of 243,000,000 and an expected
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- The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Compute the ending balance of the Ordinary Share Capital account. Compute the…
- Fortuner Company had 200,000 ordinary shares outstanding on January 1, 2021. On January 1, 2021, the entity issued 4,000 convertible 10% bonds with P1,000 face value. The bonds were converted on October 1, 2021 and 40 ordinary shares were issued in exchange for each bond. Net income was P5,000,000. The income tax rate is 30%. What is the amount of basic earnings per share? 25.00 13.80 20.83 15.62 What is the amount of diluted earnings per share? 14.47 21.65 14.72 14.61You are buying 1000 shares of Facebook on January 1, 2021. You paid $320 per share plus a brokerage commission of $84. Calculations: Date Debit Credit Db Cr b) You sell 150 shares of Facebook stock on 30 May, 2021 for $315 per share, less a $55 brokerage commission. Calculations: Date Debit Credit Db Cr 2.a) Assume that on January 1, 2021, a six-month, 12% note receivable is acquired from a customer in settlement of an existing account receivable of $50000. Date Debit Credit Db Cr b) On July 1, 2021 (6 months after the date of the note), the note matures. Customer pays in cash Calculations: Date Debit Credit Db CrA company issues 5% redeemable preference shares at their nominal value of RM10,000. The shares are redeemable at a premium of RM1,760 after 5 years. The effective rate of interest is 8%. Required: What amounts will be shown in the income statement and Statement of Financial Position for Year 1 until Year 5?
- Markat, a publicly listed company has a March 31st year-end. On 1 April 20X5 Markat issued $20 million 8% convertible loan stock at par. The terms of conversion (on 1 April 20X8) are that for every $100 of loan stock, 50 ordinary shares will be issued at the option of loan stockholders. Alternatively the loan stock will be redeemed at par for cash. Also, on 1 April 20X5 the directors of Markat were awarded share options on 12 million ordinary shares exercisable from 1 April 20X8 at $1.50 per share. The average market value of Markat’s ordinary shares for the year ended 31 March 20X6 was $2.50 each. The income tax is 25%. Earnings attributable to ordinary shareholders for the year ended 31 March 20X6 were $25,200,000 and 84 million ordinary shares in issue. Required: (a) Calculate Markat's basic EPS for the year ended 20X6. (b) Calculate Markat's diluted EPS for the year ended 20X6. (comparative figures are not required)Company ABC began its operations on January 2, 2022. The company had the following transactions during 2022: 1. On January 4, the company issued 120,000 shares of common stock to a group of investors for $3.00 per share with par value of $0.45 per share. 2. On May 1, it borrowed $20,000 from Bank of America, with interest rate of 12%. Interest on the loan is due on March 31, 2023, which is also the due date of the loan. 3. On July 1, the company acquired a new wireless networking equipment. The list price was $80,000. Because the company agreed to pay cash, it qualified for a discount of 8%. Payments for necessary transportation, software, licenses, and installation totaled $4,400. The company estimated a useful life of 5 years and a residual value of $8,000 for the equipment and used straight-line depreciation. 4. In December, the company declared a dividend of $0.03 per share, payable on April 15, 2023. 5. For the year, the company received cash payment of $137,000 from its…Throughout the calendar year 2020, Kali Corporation has 400,000 common shares outstanding (no preferred shares issued). In addition, Collie has 5,000, 20-year, 7% bonds outstanding, issued at par in 2018. Each $1,000 bond is convertible into 20 common shares after June 30, 2021. Collie reported net income of $ 600,000 for calendar 2020. Their income tax rate is 30%. Required: Calculate basic and diluted earnings per share for 2020. Solution: Please explain the solution Basic earnings per share: = $ 1.50 Incremental effect of conversion of bonds = $2.45 The conversion of the bonds would be antidilutive. No diluted EPS calculation is required. The basic and diluted earnings per share of $1
- At the beginning of the reporting period, it has $5 million of share capital and 1.5 million ordinary shares outstanding. On 1 April 2022, the company announces a bonus issue of 2 shares for every share held on that date. By the end of the year Himalaya Ltd.’s profit attributable to ordinary shareholders amounts to $5,250,000. Year 2023: Himalaya Ltd. needs to raise funds for expansion of its business. Ms. Natasha Romanoff, CEO and Mr. Clint Barton, CFO have decided to make a non-renounceable rights issue to existing shareholders of 250,000 new shares at an issue price of $20 per share. Goldman Sachs has agreed to fully underwrite the rights issue. Himalaya Ltd issued a prospectus on 1 February 2023 and applications closed on 3 April 2023. Costs associated with the rights issue and the eventual issue of the shares were $45,000. For the year ending December 2022, calculate the 2022 basic earnings per share amounts that Himalaya Ltd. must disclose in its financial statements for the year…On August 15, 2021, EasyMoney, Inc.s Board of Directors meets. and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration > Date of Record D Date of Payment $1.25 August 15, 2021 Septembe5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. > Cash D Dividends Payable > Retained Eamings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Eamings account is $625,000. ording Dividends uirement 1 August 15 Dividend declaration entry Date Account Hame Debir Credi B. Alter posting the abovsApplewood Electronics ltd reported net earnings of $ 500 000 for the year ending December 31,2019. The company had 250 000 shares of $1 par value common stock and 60 000 shares of $20 par value convertible preference shares outstanding during the year. The dividend rate on the preference was $3 per share. Each share of the convertible preferences shares can be converted into two shares of common shares B. Required: Calculate for the firm: i. the basic earnings per share for 2019. ii. the diluted EPS. for 2019. Newport Ltd had an issued share capital