lobex Corporation plc shares are currently trading at $5.00 each. Management wishes to raise capital to expand the business and announces a rights issue. Existing shareholders will be given the right to purchase one share at $3.00 for each three shares currently held. Which of the following statements is correct?
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Globex Corporation plc shares are currently trading at $5.00 each. Management wishes to
raise capital to expand the business and announces a rights issue. Existing shareholders will
be given the right to purchase one share at $3.00 for each three shares currently held. Which
of the following statements is correct?
a. The ex rights share price is £2.00 and the value of one right is £3.00
b. The ex rights share price is £4.17 and the value of one right is £2.00
c. The ex rights share price is £4.50 and the value of one right is £0.50
d. The ex rights share price is £5.00 and the value of one right is £2.00
e. None of the above
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- Globex Corporation plc shares are currently trading at $5.00 each. Management wishes to raise capital to expand the business and announces a rights issue. Existing shareholders will be given the right to purchase one share at $3.00 for each three shares currently held. Which of the following statements is correct? The ex rights share price is £2.00 and the value of one right is £3.00 The ex rights share price is £4.17 and the value of one right is £2.00 The ex rights share price is £4.50 and the value of one right is £0.50 The ex rights share price is £5.00 and the value of one right is £2.00 None of the aboveJefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of equity they own. The new shares in this offering are priced at £21 plus 3 rights. The current market value of the equity is £75 million with 3 milion shares outstanding. What is the value of one right? Show your steps. can u please upload the excel filePorter Hardware Pty Ltd issues ordinary shares for $6. Which of the following is true? a. $6 per share is presented on the statement of financial position in the ordinary shares account b. Liabilities will increase as a result of this transaction c. $6 per share is the maximum selling price for these shares d. $6 in dividends will be paid to the shareholders as a result of this transaction
- SISA Ltd is a company with 40 000 authorised Ordinary Share Capital with a par value of R1. The company issued 30 000 shares at R1.30 for each share. What would be the effect of this transaction in SISA’s records? Select one: a. Ordinary share capital will increase by R39 000 and share premium will be unaffected. b. Ordinary share capital will increase by R39 000 and share premium will increase by R9 000. c. Ordinary share capital will increase by R30 000 and share premium will increase by R39 000. d. Ordinary share capital will increase by R30 000 and share premium will increase by R9 000.(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.Please answer this problem and provide complete solution in good accounting form. Thank you! Victory Company issued 8,000 ordinary shares with P200 par value and 20,000 preference shares with P200 par value for a total consideration of P7,500,000. At the date of issue, the ordinary share was selling for P360 and the preference share was selling for P270. What is the share premium from the issuance of ordinary shares?
- The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new equity. To purchase a new share, a stockholder must remit RM 25 and four rights. (Tip: use ratio perspective to approximate the share of quantity.) (a) Calculate the price of one right.3) A company entirely financed with equity has 1,800,000 shares outstanding and decides to issue new shares with subscription rights. The price of shares before the issuance was 42 euro, and the price at which the shares are issued is 38 euro. If the price after the share issuance is going to be 40 euro, determine the number of subscription rights that a shareholder needs to buy one new share in the issuance with subscription rights.Item No. 2 is based on the following information: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per share receiving a 30% down payment. 2. In recording this transaction: a. Ordinary Share Capital will be credited in the amount of P 15,000. Ordinary Share Capital will be credited in the amount of P 16,000. b. c. Ordinary Share Premium will be credited in the amount of P 4,500. d. Subscribed Ordinary Share Capital will be credited in the amount of P 15,000.
- Ajay Construction Ltd is planning to issue the shares to the public. What is the maximum discount per share that can be offered by the company as per the statutory regulations O a 5% O b. 10% O.c 20% Od NILHow do I get this answer? Bidder Inc. is taking over Target Inc. Bidder's price per share is $59. The number of shares outstanding of Bidder Inc. is 600,000. Bidder Inc. has net income of $1,710,000. Target Inc. has a price per share of $47 and it has 380,000 shares outstanding. Bidder Inc. will do a share exchange with Target Inc. For the share exchange Bidder Inc. will value Target Inc.'s shares at a 36% over Target Inc.'s current stock price. Target Inc. net income is $230,000. The merger generates no synergies. What is the NPV of the acquisition for Bidder Inc.? Your answer should be accurate to two decimal places. If you believe the answer is zero it should be recorded as 0.00. Answer: x (-3,813,190.91)Dynatech Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Dynatech make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,211,000 $ $262,000 $ 554,000 395,000 949,000 $1,211,000 100,000 $ (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $