What will happen to mec share price

Assignment Help Managerial Accounting
Reference no: EM133038055

Question - Rights issue. micro-Electronics Corporation (mEC) has just announced that it will issue 10 million shares of common stock through a rights issue at a subscription price of $20. Before the announcement, mEC shares were trading at $26, and there were 50 mil- lion shares outstanding.

a. How many rights will mEC grant to its existing shareholders?

b. How many rights will an investor need to buy one new share?

c. What will happen to mEC's share price when the rights issue is announced?

d. What should be the value of one right?

Reference no: EM133038055

Questions Cloud

Determine beta for your firm : The Tech firm has a debt-to-equity ratio of 80% and a marginal tax rate of 25%, Determine beta for your firm
What total amount of revenue should table company disclose : What total amount of revenue should Table Company disclose in the statement of comprehensive income related to its investment in Chair Company
Criminal justice policy development : How should research be used in criminal justice decisions and criminal justice policy development?
Pass the necessary adjusting entries : Pass the necessary adjusting entries - Depreciation on buildings is based on a 20-year life. The original cost of the buildings was $720,000
What will happen to mec share price : Before the announcement, mEC shares were trading at $26, What will happen to mEC's share price when the rights issue is announced
Protect individuals from stigma of prison : There are few or no laws to protect individuals from the stigma of prison and the discrimination they face.
Develop an online service for it training : Develop an online service for IT training that includes scheduled courses, self-paced courses, and other training products like videos and books
What is flexible-budget amount for variable manufacturing : Budgeted variable manufacturing overhead costs for 22,500 hours $213,750. What is the flexible-budget amount for variable manufacturing overhead
Women in criminal justice system : Write a paper addressing Women in the Criminal Justice System. examine Women in the New Jersey State Criminal Justice system.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Normal costing-actual costing systems

Describe the reasons a consulting firm might use a normal costing system rather than an actual costing system.

  What is total cost that would be classified as batch-level

During the past year, it has incurred, Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

  What are environmental social and governance costs

Why do credit-rating agencies, such as Moody's and Standard & Poors, now want to know about a firm's sustainability practices?

  What is the economic order quantity

What should be the reorder point to have a 95 percent service level? Explain how the system will operate. What is the economic order quantity?

  Determine the percent of unused indirect labour

Determine the per cent of unused indirect labour compared to available indirect labour hours. Draw conclusions from this analysis.

  Differentiate between the two types of budgets

Differentiate between 2 types of budget. Provide support for your business selection and include the advantage for using a flexible budget over a static budget.

  Determine which proposal is the better

Income tax rate 35% and Cost of capital 10%. Determine which proposal is the better one based on Internal rate of return

  Prepare a purchases budget by month for the first quarter

Prepare a purchases budget by month for the first quarter and for the first quarter as a whole. Prepare a schedule of cash disbursements for accounts payable

  Indicate whether this overhead is under or over applied

Calculate the predetermined overhead rate for the current year and use this rate to apply overhead to the jobs that are worked during February.

  Should Pamela buy the blades from outside supplier

Pamela has an opportunity to purchase its 100,000 blades from an outside supplier at a cost of P2.20 per blade. Should Pamela buy blades from outside supplier

  Prepare an adjusted trial balance at december 31

Prepare the year-end adjusting entries in general journal form using the information and prepare an adjusted trial balance at December 31, 2014.

  Compute the depreciation expense under straight-line method

Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places)

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