User Account

All Pages

Calculate the amount received by the investor

Assignment Help Finance Basics
Reference no: EM133068650

1. An investor holds 9,302 shares of KC Ltd, which was bought for $18.87 per share and is now priced at $23.58 per share. KC Ltd makes a 2-for-6 rights issue at $17.47. The investor decides to subscribe to the rights issue. What is the price per share expected to adjust to post the rights issue (the ex-rights price)? Give your answer to 2 decimal places

2. An investor holds $10,000,000 corporate bonds with a coupon of 7.69%. Interest is paid semi-annually. Calculate the amount received by the investor one period from now (today is the 1 January 2017), based on Actual/360-Day convention.

a. $ 386,800
b. $ 392,200
c. $ 390,000
Cannot be determined from the information provided

3. An investor owns 5 000 IBM shares, with a market value of $230 per share. If IBM has a 3-for-1 subdivision, how many shares will the investor now own?

a. 1 666
b. 15 000
c. 1 667
d. 20 000

4. An investor owns 5 000 IBM shares, with a market value of $230 per share. IBM announces a 1-for-5 consolidation. How many IBM shares will the investor own after the consolidation?

a. 1 000
b. 25 000
c. 26 000
d. 833

5. An investor owns 3,789 XYZ Inc. shares, with a market value of R242.01 per share. If XYZ announces a 1-for-4 consolidation, what will the new share price be? (Give your answer to 2 decimal places)

6. An investor holds 5,799 shares of KC Ltd, which was bought for $18.14 per share and is now priced at $20.04 per share. KC Ltd makes a 3-for-5 rights issue at $15. The investor decides to subscribe to the rights issue. What is the value of the nil paid rights? Give your answer to 2 decimal places

7. A company's shares are trading at $28.51. The company declares a dividend of $0.95 per share. Shareholders are given the option of cash payment or in the form of a scrip dividend. How many new shares will an investor receive if they currently hold 1,037,722 shares and opt for the scrip dividend, assuming the share price is unchanged on payment date?

8. An issuer distributes two pari passu shares for every one held by investors. If an investor holds 75 000 valued at $80 per share, what will their overall shareholding be after the bonus issue?

a. 37 500
b. 150 000
c. 225 000
d. 300 000

Reference no: EM133068650

Questions Cloud

What position in futures contracts is required : 1. A portfolio supervisor plans to use a Treasury bond futures contract to hedge a bond portfolio over the following three months. The portfolio is well worth $
Do you think that this solution is a complete erp solution : Do you think that this solution is a complete ERP solution? Why do you say this - do you believe that this is an ERP I or ERP II solutions? Why do you say this
Consent and Disclosure in Pediatric Heart Surgery : The overarching theme in James story is the absence of meaningful Informed Consent.
Prepare Pina Colada journal entry to record the dividends : During the year, Burke paid a cash dividend of $3.25 per share. Prepare Pina Colada's journal entry to record the dividends received
Calculate the amount received by the investor : 1. An investor holds 9,302 shares of KC Ltd, which was bought for $18.87 per share and is now priced at $23.58 per share. KC Ltd makes a 2-for-6 rights issue at
Which do you think enhances the taxi industrys position : Work through the dimensions of threat of new entrants, buyer power, substitute products and supplier power by listing the factors of impact in each dimension
Evaluate the new aircraft project for airbus : Evaluate the following new aircraft project for Airbus. Initial investments were $223 paid today. Assume that Airbus will produce 80 aircraft per year for five
Build excel model of the problem : Baxter Co, originally established 19 years ago to make sports gadgets, is now a leading producer in the market. 10 years ago, the company introduced its first l
What activities have you worked on since the last stand-up : What activities have you worked on since the last stand-up and Are there any obstacles that are getting in the way of finishing your work as expected

Reviews

Write a Review

Finance Basics Questions & Answers

  Construct the pro forma balance sheet

Construct the pro forma balance sheet assuming that reorganization takes place. Show the new preferred at its par value. Construct the pro forma income statement. How much does the proposed recapitalization increase income available to common shareho..

  Easier for firms with weak credit position to obtain lease

Why do you think it is easier for firms with weak credit positions to obtain lease financing than bank loan financing?

  Raymond manufacturing faces a liquidity crisis

Raymond Manufacturing faces a liquidity crisis: It needs a loan of $100,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm's accounts receivable are quite low, but its invento..

  What is the payback period

The LoveLivingInParadise Company wants to calculate how long it will take to recover their initial investment on a project. The end-of-year cash flows are estim

  Report of independent registered public accounting firm

Management's Assessment of Internal Control over Financial Reporting-Report of Independent Registered Public Accounting Firm-Report of Independent Registered Public Accounting Firm on Internal Control

  What will be total percentage return to peruvian investor

Now assume that the stock increases by $8, but that the dollar decreases by 10 percent versus the Peruvian nuevo sol. What will be the total percentage return.

  Make portfolio with an expected return

If your goal is to make portfolio with an expected return of 11.1 percent, how much money will you invest in Stock X?

  What is the periodic rate if expressed in percent form

What would be the monthly payment on a $20000 loan at 6% for 20 years? What is the periodic rate if expressed in percent form?

  Discuss the new procedural approach

Ed Draycutt is the engineering manager of Airway Technologies, a firm that makes computer systems for air traffic control installations at airports.

  Find the after-tax return to a corporation

Find the after-tax return to a corporation that buys a share of preferred stock at $35, sells it at year-end at $35, and receives a $7 year-end dividend. The fi

  What is the projected sales price of property

Using the worksheet on the below conduct a Before Tax/ No Financing Analysis for a 100 unit property and answer the following questions given the following inf

  What are the types of opportunities sought

What are the types of opportunities sought by aspiring multinational companies? What are the risks faced by these companies which are specific to the international nature of their business activities?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd