Calculate the value of a right given the following information: 4 of rights to buy one share; subscription price of $12:$32 common share price during the rights-on period. O a $4.50 Ob. $4.00 OC. $3.50 Od. $5.50 Oe. $5.00 4
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- 14. Laursen plc has announced a 1 for 3 rights issue at a subscription price of £2. The current price of the shares is £3.04. What is the theoretical value of the right per existing share? a. £0.78 b. £0.35 c. £0.26 d. £2.78purchased for P120 per Problem 16-14 (AICPA trading. These 50,000 shares were rights to the investor. and two of these rights. Each share had a market value of P130 and each right had market value of P20 on the date of issue. a What total cost should be'recorded for the new shares that are acquired by exercising the rights? a. 2,250,000 b. 3,250,000 c. 3,050,000 d. 5,500,000Barnum Company stock sells at P70 a share with rights on. The subscription price is P55. Four rights are needed to purchase a new share of stock. What is the value of each right? A. P1.00B. P2.00C. P3.00D. P4.00E. None of the above
- D3) Finance Alc raised £x in a 2:5 Rights Issue. Pre-rights share capital comprised y £1nv shares, and the post-rights share price was £1.25. Calculate the pre-rights share priceHow much should be recorded as the purchase price of theindividual PPE items: 3. Five units of equipment was purchased through theissuance of 1,000 pieces of P1,000 par‐value shares. Eachequipment has a fair value of P300,000 while a share isvalued at P1400.LIILK LO see additional instructions You have been given the following share prices of 4 companies. Please use the information below to answer the questions that follow: Date Share 1 Share 2 Share 3 Share 4 28-Sep-20 R 66,00 R 24,00 R 121,00 R 32,00 29-Sep-20 R 72,00 R 23,00 R 123,00 R 19,00 30-Sep-20 R 76,00 R 26,00 R 121,00 R 29,00 01-Oct-20 R 68,00 R 32,00 R 123,00 R 23,00 02-Oct-20 R 66,00 R 31,00 R 124,00 R 24,00 05-Oct-20 R 71,00 R 22,00 R 122,00 R 45,00 06-Oct-20 R 79,00 R 31,00 R 122,00 R 45,00 07-Oct-20 R 79,00 R 31,00 R 119,00 R 33,00 08-Oct-20 R 66,00 R 25,00 R 122,00 R 28,00 09-Oct-20 R 69,00 R 26,00 R 122,00 R 29,00 Share 1 Share 2 Share 3 Share 4 Calculate the average share price for R R R each share What is the arithmetic growth rate for each share? 0% What is the geometric growth rate for each share? %
- What is the par value per share? * Mars Corporation recorded the following joumal entry: Land Preference share capital Share premium-preference To record issuance of preference shores @120 Per share. 450,000 420,000 30,000If you wish to purchase 50 ANZ Ltd. shares that another individual is selling, this would take place in the: Select one: a. wholesale market b. primary market c. secondary market d. money marketAnswer and explain with computation Company's issued 20,000 share capital receiving land with fair value of P500,000. If the share capital is no par and no stated value and the cost of the land is P200,000, how much in the legal capital? A. P-0 b. P200,000 c. P300,000 d. P500,000
- Item No. 10 is based on the following information: cod 010 EL bna S...20M mest sina310 26W vnsqmo) Ov618 to sninnised Sweety Corporation sold 4,000 ordinary shares with a par value of P 100 Osmontu 95 per share to a subscriber for P 105 per share receiving an initial payment of 30% of the subscription price. After repeated demands for the subscriber to pay the 19DTONS 67 remaining balance but to no avail, the corporation was forced to sell the delinquent shares at a public auction, incurring advertising costs of P 24,000. Suce HP 10. What should be the minimum bid price for the delinquent shares? 08 a. P 280,000. art now briel to 1061 8 16 c. P 304,000. b. P 294,000. d. P 318,000. as muime19 3162 vienibo not fogs ove18 bluoria nuor i Ö W SE4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?Required: (a)Assuming a rights issue of shares is made, calculate: (i)the theoretical ex-rights price of an ordinary share in Devonian plc (ii)the value of the rights for each original ordinary share. (b)Calculate the price of an ordinary share in Devonian plc in one year’s time assuming: (i)a rights issue is made (ii)a loan issue is made. Comment on your findings.