The Dreitz Company offered 12,000 shares in a rights offer. By prior agreement, the underwriter, Smith-Lara, purchased the 832 unsold shares. For its participation in this rights offer, Smith-Lara is most likely entitled to: Multiple Choice the gross margin. the optional spread. a standby fee. the subscription price. an oversubscription fee.

The Dreitz Company offered 12,000 shares in a rights offer. By prior agreement, the underwriter, Smith-Lara, purchased the 832 unsold shares. For its participation in this rights offer, Smith-Lara is most likely entitled to: Multiple Choice the gross margin. the optional spread. a standby fee. the subscription price. an oversubscription fee.

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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Raymond Holding Inc., a sub-holding of the Lee Group, makes an offer for all the equity shares of Gel Ltd. On July 01, 2021. The consideration for the offer is 50,000 shares in Raymond together with P10,000,000 cash. The offer is accepted on August 01, 2021. However, the offer is conditional upon receiving the approval of the competition authority which is obtained on September 30, 2021. In the past, the competition authority has never rejected the application for any merger or combination. The shares are exchanged on August 10, 2021. What is the date of acquisition?Raymond Holding Inc., a sub-holding of the Lee Group, makes an offer for all the equity shares of Gel Ltd. On July 01, 2021. The consideration for the offer is 50,000 shares in Raymond together with P10,000,000 cash. The offer is accepted on August 01, 2021. However, the offer is conditional upon receiving the approval of the competition authority which is obtained on September 30, 2021. In the past, the competition…
NF Corporation issues P15 par value ordinary shares during 2021. The company received subscription from Mr. Navarro for 25,000 shares at P18 per share receiving 45% of the subscription price. On due date, Mr. Navarro failed to pay the balance of the subscription. The shares were subsequently declared delinquent and were advertised for sale at a public auction incurring P4,000 for advertising the sale. At the public auction, the company received bids from Mr. Pineda for 10,000 shares, Mr. De Torres for 9,000 shares, and Mr. Belen for 12,000 shares. The balance of the subscription price was outstanding for two months and was subject to 12% interest. How much cash was collected from the highest bidder?
Ice Shave Entity writes a put option on Dec 31, 20x1 to purchase 5000 shares in exchange for a $5,000 premium. Under the contract, Ice Shave may be required to purchase $100,000 of its own shares two years from now (PV of 82,645). The contract may be settled only under gross physical delivery method. Record all the necessary journal entries.
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Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own stock. Under these circumstances, why might the determination of a fair value for the consideration be difficult?
Moosa LLC is a company with a December 31 year end . On January 1, 2014, the company acquires 1000 shares of Mubarak LLC at a cost of OMR 10 per share. Transaction costs total OMR 100. The investment does not give Moosa LLC influence over , or control of Mubarak LLC . Moosa LLC classifies these shares as held for trading . On December 31, 2014, the fair value of the Mubarak LLC shares has increased to OMR 15 per share. The Mubarak LLC shares did not declare or pay any dividends during 2014 On March 1, 2015 , Moosa LLC sells all of the Mubarak LLC shares for OMR 18 per share. Transaction costs the disposal are OMR 150.Prepare Journal Entries in the books of Ismail LLC
ABC Corp has excess cash to invest and wants to buy shares of XYZ Inc to profit from the changes in their value. The company follows IFRS and will account for its investment in XYZ Inc using the FV-NI method and has a December 31 year end. The share price of XYZ Inc was $58.47 on March 1, $49.67 on September 15, and $54.05 on December 31. ABC Corp purchased 58,405 shares of XYZ Inc on March 1 and sold 37,201 of them on September 15. It still owned the remaining shares on December 31. The company paid a per-share commission fee of 1.67% of the share price on the day of buying or selling the shares. Assuming the company record all investment income, gains, fees, and losses in one account, how much net investment income or loss was recorded during the year on its investment in the shares of XYZ Inc? O a. -$4306,263 O b. -$314,323 -$322,383 O d. -$330,442 O . -$298,204
Tech provides laptop-related maintenance services to Shemco. In exchange, TrueTech received 100 shares of Shemco no-par common stock. Determine the transaction price in the contract for the following scenarios: (a) 100 shares of Shemco's stock are traded on an active market for $55,000. The standalone value of the maintenance services is $56,000. (b) Shemco is privately held, making it difficult to estimate the fair value of the shares given in exchange for the maintenance services.
Please help me understand the problem. Kindly explain what does the problem wants to emphasize? I want to answer it on my own but I don't understand the problem. I hope you can help me.
Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own stock. Under these circumstances, why might the determination of a fair value for the consideration transferred be difficult?
The Davis Corporation granted a share appreciation right plan to its employees on December 31, 20x0. A total of 300,000 share appreciation rights were granted. The vesting period ends on December 30, 20x2. The exercise period starts December 31, 20x2 and ends December 31, 20x4. Data on the fair values of the SAR's, the average cash out amount, the number of SAR's exercised, and management's estimate of the % of SAR's that will vest is as follows: Date Fair Value of each SAR at year-end Average cash out for exercised SARS during the year Amount of SARS exercised Estimate of % of SARS that will vest December 31, 20x1 $7 75% December 31, 20x2 11 $8 85,000 72% (actual) December 31, 20x3 9 10 57,000 December 31, 20x4 12 74,000 Required - a. What is the compensation expense for the year ended December 31, 20x2? b. What is the compensation expense for the year ended December 31, 20x4?

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