EBK EXCELLENCE IN BUSINESS COMMUNICATIO
EBK EXCELLENCE IN BUSINESS COMMUNICATIO
11th Edition
ISBN: 9780100665934
Author: BOVEE
Publisher: YUZU
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Chapter 11, Problem 13LOC
Summary Introduction

To Select:

The reason that it is important to fully understand the instructions and guidelines of using computer-based research tools.

Concept introduction:

Computer-based research tools are those such as search engine Google, web directory, database, which enable one to access data using various methods such as typing in key terms, copying data and many alternative ways.

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26. Armstrong Co has produced the following net profit figures for the years ending 31 December. Sm 20X1 1.2 20X2 0.6 20X3 2.1 On 1 January 20X2 the number of shares outstanding was 600,000. During 20X2 the company announced a rights issue with the following details. Rights: 1 new share for each 4 outstanding Exercise price: $7.00 Last date to exercise rights: 1 May 20X2 The market (fair) value of one share in Armstrong immediately prior to exercise on 1 May 20X2 Required: Calculate the (a) EPS restated for rights issue for 20X1, (b) EPS for 20X2 and (c) EPS for 20X3. Show your calculations otherwise the answer will not be considered. = $10.00.
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