User Account

All Pages

Consider the effect of the rights issue

Assignment Help Finance Basics
Reference no: EM131117780

Kingee has 900000 shares outstanding whose current market price is 130. The company needs 22.5 million to finance a proposed expansion. The BOD has declared that rights be issued at sh.75 per share to raise he required finance.

Required,

Calculate;

The number of rights required to buy one new share.

The price of the share after the rights issue (ex rights price).

The theoretical value of the right.

Consider the effect of the rights issue on a share holder under the three options available. Assume he has 3 shares sh.75 cash in hand.

Reference no: EM131117780

Questions Cloud

Alternative to a direct stock transaction : Provide a specific example of how you might advise a client to use an option transaction as an alternative to a direct stock transaction.
Which growth factors impacted ecosystem balance : What is ecosystem balance? Which reduction factors and which growth factors impacted ecosystem balance in Episode 1? Describe two ways in which the invasive species and native species impact ecosystem balance.
How you can ensure high standard of reliability and validity : Explain which method or instrument you would use to gather data. Describe the sample size appropriate for the population and how you would select participants.
Following categories and probabilities to age its receivable : Brown Company uses the following categories and probabilities to age its receivables:
Consider the effect of the rights issue : Consider the effect of the rights issue on a share holder under the three options available. Assume he has 3 shares sh.75 cash in hand.
Explain why the central bank''s intervention caused : Explain why the central bank's intervention caused such panic among currency futures traders with buy positions. Explain why the floor broker's willingness to sell 300 pound futures contracts at the going market rate aroused such concern. What might ..
The price of great american landscaping inc : The price of Great American Landscaping Inc. is now $85. The company pays no dividends. Toby Chysler expects the price four years from now to be $125 a share. Should Toby buy Great American Landscaping if he wants a 15 percent rate of return? Exp..
Create a world with a zombie and an open grave : Create a world with a zombie (Spooky) and an open grave (a black square on the ground).
Summarize the major provisions of the law that you chose : Summarize the major provisions of the law that you chose. Describe the economic impact of the law. Provide specific economic data from credible references. Has the law improved the environment or situation? Provide specific data from credible referen..

Reviews

Write a Review

Finance Basics Questions & Answers

  Fyre inc has sales of 625000 costs of 260000 depreciation

fyre inc. has sales of 625000 costs of 260000 depreciation expense of 79000 interest expense of 43000 and a tax rate of

  Determining the future value of the investment

Determining the future value of the investment and every year for the next six years in an investment paying

  Trevor price bought 10-year bonds issued by harvest foods

trevor price bought 10-year bonds issued by harvest foods five years ago for 952.66. the bonds make semiannual coupon

  The cigarette industry is subject to litigation for health

the cigarette industry is subject to litigation for health hazards posed by its products. the industry has been

  Prepare the entry to record issuance of the bonds

Prepare the entry to record issuance of the bonds at par under U.S. GAAP

  How the percent of sales method is developed

The "percent of sales method" is a method of preparing pro forma financial statements. Which of the following would be an example of how the "percent of sales method" is developed?

  Calculate the total market value

In addition, the company has a second debt issue on the market, a zero coupon bond with three years left to maturity; the book value of this issue is $76 million and the bonds sell for 78 percent of par.

  Compute the volume-mix and price revenue variances

Compute the volume, mix, and price revenue variances. How did things turn out for the group considering just revenues? How did they turn out from a profit perspective?

  General overview of g&a departments

I have to do a presentation to my team on a topic related to my job. I currently work in the Financial Planning and Analysis department.

  Determine the sustainable growth rate

Determine the sustainable growth rate of a firm with the following selected financial results?

  Sources of short-term-medium-term and long-term

What are some sources of short-term, medium-term, and long-term international financing? What are the costs associated with each of these sources?

  What is the customer profit

The customer places 70 orders, orders 24 unique items, 940 total items, and makes 7 returns. What is the customer profit (loss)? $509.80 $7,490.20 $1,800 $1,290.20

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