Monetary authority of singapore

Assignment Help Finance Basics
Reference no: EM133073117

On 18 December 2019, Japfa Limited, an industrial agri-food company listed on the Singapore Exchange (SGX) announced a proposal to raise funds via a rights issue. The stock closed at $0.575 that day, and the announcement was made after the market close. The Offer Information Statement (OIS) lodged with the Monetary Authority of Singapore is dated 14 January 2020.

You are discussing this rights issue with a friend. Use the information on the rights issue from the OIS, which can be retrieved from the SGX website, to answer the following questions

Your friend says that this rights issue does not allow you to sell the rights and that, in such a rights issue, you are essentially forced to invest more money in the stock, so exercising the rights and selling the rights are not value-equivalent options. Assess your friend's statement, quantitatively if applicable.

Reference no: EM133073117

Questions Cloud

Calculate the current liability to present in the statement : The present value of the lease payments is £45,000. Calculate the current liability to present in the Statement of financial position at 30 September 2021
What is a firm intrinsic value : What is a firm's intrinsic value? Its current stock price? Is the stock's "true long-run value" more closely related to its intrinsic value or its current price
The road to kolkata-nh-34 and ppp in india : 1. What are the risks of the project throughout its lifecycle, and how can they be mitigated?
Prepare the entry to record the transactions : The bank charges Sandhill Company $0.50 per debit card transaction. Prepare the entry to record the transactions by Sandhill Company
Monetary authority of singapore : The Offer Information Statement (OIS) lodged with the Monetary Authority of Singapore is dated 14 January 2020.
What is value of the insurance policy : MOX Insurance Co. is selling an insurance policy that pays $3,000 every 2 weeks forever with the first payment starting 20 weeks later from now.
What is the best estimate of the nominal interest rate : Absalom Energy's 13% coupon rate, semiannual payment, $1,000 par value bonds that mature in 15 years are callable 2 years from now at a price of $950.
Determine the proceeds of the note : n January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $66,000. Determine the proceeds of the note
What is central purpose of the behavior approach : Explain the behavior approach and 2 general kinds of behaviors. What is the central purpose of the behavior approach?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why the word '''' hedge'''' is currently misapplied

Why the word '' hedge'' is currently misapplied to hedge fund?

  Compute and analyze items a through d using a microsoftreg

your company is thinking about acquiring another corporation. you have two choicesmdashthe cost of each choice is

  Ubers invovative channel distribution strategy

Describe the key elements behind ubers invovative channel distribution strategy

  Using the replicating portfolio price this call

Consider a European call option written on St. the call has a strike price K = 120 and expiration of 3 months. Using St and the risk-free borrowing and lending, Bi, construct a portfolio that replicates the option. Using the replicating portfolio pri..

  Secondary market for securities

Distinguish between the primary market and the secondary market for securities.

  What will the earnings per share be after stock repurchase

Today, the firm is repurchasing $4,800 worth of stock. Ignore taxes. What will the earnings per share be after the stock repurchase?

  Calculate the payback period

An eight year project has an initial cost of $425,000, annual cash inflows of $100,000 at the end of each of the first five years, and $50,000 at the end of eac

  How big will the annual payments be

(Loan amortization) On December 31, Beth Klemkosky bought a yacht for $50,000, paying $10,000 down and agreeing to pay the balance in 10 equal end-ofyear.

  Decide on strategic management plans

In this assignment, you will decide on strategic management plans, a company's strategic competitiveness, and the best model for above-average returns.

  Efficient market hypothesis

What form, if any, of the Efficient Market Hypothesis do you think exists? Explain why you believe what you believe. Then explain how you would "invest" going f

  Advantage of the dualism in economies

The Asian economies are often described as dualistic. Name at least one business structure, from either the Japanese

  Discuss ms wolfe strategies and goals

Discuss Ms. Wolfe's strategies and goals, how can she "add value". Think about issues such as efficiency, risk-return, and how to add value.

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