Calculate the total amount the company

Assignment Help Finance Basics
Reference no: EM131537286

A company has 15 million shares on issue and is planning a 1 for 5 rights issue at an issue price of $4.20. The market price of a share was $4.80 at close of trading, just before the rights announcement.

Calculate the total amount the company will raise from the right issue.

Calculate the theoretical ex-rights price per share immediately after the rights issue.

Reference no: EM131537286

Questions Cloud

Develop an introduction on background of each of theories : Develop an introduction on the background of each of your theories and discuss the advantages and disadvantages of each of the theories.
Differences in corporate strategy in marketing : The case presents you with financial ratios for eight pairs of unidentified companies and asks you to mate the description of the company with the financial.
Why do you think google employees are offered fpc : Innovative thinking comes from creative minds. Technology companies must continually develop new products and applications for those products in order to stay.
Future of the united states stock markets : Please discuss the signs that you see for the future of The United States stock markets for the next decade.
Calculate the total amount the company : Calculate the total amount the company will raise from the right issue. Calculate the theoretical ex-rights price per share immediately after the rights issue.
How many accounts are kept for the investment of all owners : Under what major chart of accounts division are the owners' equity accounts for a corporation normally listed?
Leverage of options : How can financial institutions with stock portfolios use stock options when they expect stock prices to rise substantially but do not yet have sufficient funds.
Net present value when evaluating projects : Green Landscaping, Inc. is using net present value (NPV) when evaluating projects.
Key financial management team for company : The company's CEO is now looking to expand its operations by investing in new property, plant, and equipment.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

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