Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Nixon Corporation has planned right issue of 50,000,000 Ordinary shares which has par value of PKR 10/- each. The stock of Nixon Corporation is illiquid in nature so therefore, the right issue price will be 60% discount to the current market price which is PKR 80/- per share. The proceeds from this right issue will be utilized for Balancing, Modernization and Replacement (BMR) of existing unit. A local brokerage house has been appointed as underwriter by the Company for the subject right issue. The brokerage house has approached other financial institutions for underwriting commitment in the subject right issue. Underwriting Commission will be 0.80% and Take up Commission will be 1.20%. East West Bank has given underwriting commitment of PKR 800Mn for the aforementioned right issue.
Required:
(a) What will be the underwriting and take up commission amount for East West Bank if right issue is 70% subscribed?
(b) After 6 months of this right issue, current market price of the stock is PKR 72/share and the Portfolio Manager of East West Bank wants to sell 40% shares which were taken up by the Bank as part of underwriting commitment in the right issue. Which type of strategy the Portfolio Manager should opt to execute the sell transaction in next 2 days:
i) At price level of PKR 70/share?
ii) At current market price level?
iii) What will be the capital gain / (loss) in both types of execution strategy?
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 ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.
Briefly describe the major differences between a sole proprietorship and a corporation
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 in Europe and the U.S.?
State pricing theory and no-arbitrage pricing theory
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.
The Effect of Financial Leverage and working capital management
Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.
Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.
Time Value of Money project
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd