Rainbow Corp. has stock that currently sells for $12 per share, and there are 6 million shares outstanding. It hasannounced rights offer to raise $5 million, with the subscription price set at $5 per share. The following rights offertimetable is plannedJanuary 4, 2024 - announcement dateFebruary 8, 2024 - holder of record dateFebruary 23, 2024 - rights expiration dateTHIS IS ONE QUESTION ONLYUSE FORMULA AND EQUATIONSDO NOT USE EXCELSuppose you own 3,000 shares of Rainbow Corp. stock.a. How many shares must be sold to raise the required amount?b. How many rights are required to buy one new share?c. What is the value of a right?d. What is the ex-rights price?e. What is the ex-rights date? What is your wealth position and percentage ownership in this company on theannouncement date?f. What is your wealth position and percentage ownership in this company if you decide to sell your rights before theexpiration date?g. What is your wealth position and percentage ownership in this company if you decide to exercise your rights beforethe expiration date?h. What is your wealth position and percentage ownership in this company if you decide to let your rights expire?

Step 1: Determine the Number of Shares to be Sold to Raise $5 MillionSubscription Price per…

Answered: Rainbow Corp. has stock that currently…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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Please give solutions and explanation to the three questions. The correct answer is already given, just provide me with solution. "The following are found in the trial balance of M Corporation at December 31, 2021: Authorized ordinary share, P50 par value P3,000,000; Subscription receivable P200,000; Unissued ordinary share P1,000,000; Subscribed ordinary share P500,000; Share premium ordinary P100,000. What is the total number of shares issued?" Answer: 40,000 shares The shareholders’ equity section of the statement of financial position of LW Corporation showed the following balances at December 31, 2020: Ordinary share capital, 10,000 shares issued P300,000 Share premium 100,000 Retained earnings 240,000 Treasury shares, 1,000 shares…
Below are 3 questions with answers, Please give solutions and explanation to the following questions. The correct answer is already given, just provide me with solution. AS PER BARTLEBY, YOU WILL ANSWER THE FIRST THREE QUESTIONS... please, don't answer just one question, it's unfair "The shareholders equity section of N Company at the end of the 2021 and 2020 are as follows: (2019) 10% Preference share, P100 par P1,500,000; Ordinary share, P20 par P1,000,000; Share premium-preference P210,000; Share premium-ordinary P400,000 (2020) 10% Preference share, P100 par P800,000; Ordinary share, P20 par P600,000; Share premium-ordinary P200,000. What is the total number of ordinary shares issued as of December 31, 2021?" Answer: "50,000 shares" During its first year of operations, TLTH Corporation had the following transactions relating to its ordinary shares: Issued 80,000 shares for cash at P60 per share. Issued 500 shares to lawyers in payment of a bill for P35,000 for services…
Encircle the correct answer. No need Solutions Question 2: A 1,000 shares subscription was declared delinquent. The outstanding receivables from A related to 1,000 shares is P110,000. Which of the following offers would pertain to the highest bidder? Allocation of 1,000 shares. a.) Bidder Delinquent subscriber 750 250 b.) Bidder Delinquent subscriber 400 600 c.) 1,000 shares , None d.) Bidder Delinquent subscriber 500 500 shares Question 3: The shareholders equity of ANITA Corporation appears as follows: Ordinary shares, 50,000 shares P100 par = P5,000,000 Share premium = 200,000 Retained Earnings = 2,000,000 Treasury shares, 5,000 were acquired at P160/share If treasury shares were reissued for P800,000 what will be the correct journal entry? a.) Cash 800,000 Share Premium 200,000…
Q1. Pheonix Limited made an offer to the public via a prospectus of 1,000,000 shares with an issue price of $1.00 per share. The shares were payable as $0.50 on application and a further $0.20 on allotment and $0.30 on call. Applications closed on 1 March 2020 and 1,500,000 applications were received (an oversubscription of 500,000 shares). Allotment was made on 20 March 2020. The company allotted 1,000,000 shares and the excess application monies were retained against allotment and call amounts. The call money was due on 1 October 2020. All monies to be paid have been received on time except 100,000 shareholders who could not pay the call money. These 100,000 shares were forfeited by the management on 20 November 2020. Prepare the journal entries to record the above.
Barnum Company stock sells at P70 a share with rights on. The subscription price is P55. Four rights are needed to purchase a new share of stock. What is the value of each right? A. P1.00B. P2.00C. P3.00D. P4.00E. None of the above
Corporation Ltd is considering raisng additional equiry via a rights issue, in the amount of $120,000. It currently has 18,000 ordinary shares outstanding that sell for $24.36 each. The subscription price will be $20 per share. What is the value of one right?
To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020: Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares. 20 Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued. 31 A stockholder received 2,000 preferred shares with a market value of P200 201 Feb. 8 - 300 treasury shares were sold for P45,000 20 - A shareholder paid P70,000 for 500 common shares. 28 - 5,000 preferred shares were redeemed at a price of P120 per share Mar. 1 - 100 treasury shares were sold for P10,000. Direction: 1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries 3) Prepare the shareholders' equity…
NEED ASAP. Solve correctly and show your computations. NXP 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?
If answered within 30mins,it would be appreciable!! Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes:Carrying Amount Fair ValueABC Ltd. shares $15,000 $17,500Ace Ventura Corp. shares 24,300 22,500Shrek Ltd. Shares 75,000 80,200During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS.Required:a. Prepare the adjusting entry for December 31, 2020, if any.b. Prepare the entry for the Ace Ventura and Shrek sales.c. Prepare the adjusting entry for December 31, 2021, if any.
Item No. 10 is based on the following information: cod 010 EL bna S...20M mest sina310 26W vnsqmo) Ov618 to sninnised Sweety Corporation sold 4,000 ordinary shares with a par value of P 100 Osmontu 95 per share to a subscriber for P 105 per share receiving an initial payment of 30% of the subscription price. After repeated demands for the subscriber to pay the 19DTONS 67 remaining balance but to no avail, the corporation was forced to sell the delinquent shares at a public auction, incurring advertising costs of P 24,000. Suce HP 10. What should be the minimum bid price for the delinquent shares? 08 a. P 280,000. art now briel to 1061 8 16 c. P 304,000. b. P 294,000. d. P 318,000. as muime19 3162 vienibo not fogs ove18 bluoria nuor i Ö W SE
Delta NV has share capital of $l m in shares of $0.25 each. At 31 May 2019 shares had a market value of $1.1 each. On 1 June 2009 the company makes a rights issue of 1 share for every 4 held at $0.6 per share. Its profits were $500,000 in 2019 and $440,000 in 2018. The year-end is 30 November. Required: Calculate (a) the theoretical ex-rights price; (b) the bonus issue factor; (c) the basic earnings per share for 2018; (d) the basic earnings per share for 2019.
Imssb2.mutah.edu.jo 合 Not yet answered Marked out of 1.50 P Flag question At year-end 2019, Lamar Company's balance sheet shows total assets of 12 million, total liabilities (including preferred stock) of 8 million, and 150,000 shares of common stock outstanding, Lamar Company found on investigation that it could obtain only 10 million if it sold its assets today, The firm's liquidation value per share therefore would be: Select one: а. 13.33 O b. 66.67 О с. 26.6 O d. 120 Finish attempt.

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