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Calculate the amount received by the investor

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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

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