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abruzzese [7]
1 year ago
13

An investor exercises the right to buy one additional share at $20 for every four shares held. how much should each share be wor

th after the rights issue if they previously sold for $50 each?
Business
1 answer:
Verdich [7]1 year ago
5 0

$45.00 should each share be worth after the rights issue if they previously sold for $50 each.

<h3>What is share?</h3>

A share is a financial market unit used in mutual funds, limited partnerships, and real estate investment trusts. The term "share capital" refers to all of an enterprise's shares. A shareholder of the corporation is someone who owns stock in the company.

A share is a type of ownership unit that represents an equal amount of a company's capital. A share entitles the shareholder to an equal claim on the company's profits and losses. There are two types of shares: equity shares and preference shares.

A company's shares signify its ownership. When a person purchases stock in your company, they become a shareholder. Shareholders elect who runs a firm and participate in critical decisions.

To know more about share follow the link:

brainly.com/question/25818989

#SPJ4

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Firm A employs a high degree of operating leverage; Firm B takes a more conservative approach. Which of the following comparativ
Aneli [31]

Answer:

Statement B is correct.

Explanation:

High Operating Leverage represents higher fixed cost in comparison to variable cost, and thus that means the company will get its break even earlier or we can say with low units, but after break even profits will be higher.

As in the given case Firm A has higher Operating Leverage than Firm B, thus Firm A has lower Break even point but eventually its profit after reaching break even will grow higher.

Thus, Statement B is correct

4 0
3 years ago
Gilberto's profit is maximized when he produces 3 shirts. When he does this, the marginal cost of the previous shirt he produces
rosijanka [135]

Explanation:

Profit is maximized at the production point of four tops. The disparity in net income and net expenditure is highest in this amount.

Another way of talking about this is to note that for the first 4 shirts that Gilberto makes, the marginal cost (MC) of making each shirt is smaller than the total revenue (MR) it generates from selling the shirt.

Beyond just the third shirt he makes per hour, the total cost of making the shirt is higher than the amount Gilberto receives; thus, opting to manufacture more than 4 shirts decreases Darnell's benefit.

3 0
3 years ago
Which of the following is not considered a legitimate expense of a partnership? a Interest paid to partners based on the amount
never [62]

Answer:

a Interest paid to partners based on the amount of invested capital.

Explanation:

A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.

Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.

Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.

8 0
3 years ago
If consumers start to believe they need a product, what is likely to happen?
Contact [7]

Answer:

Option A

Explanation:

Less elastic Demands means ,there will be less effect on the demand of a product if the price of product changes.

5 0
3 years ago
Read 2 more answers
Companies A and B each have the same level of total assets, the same tax rate, and the same earnings before interest and taxes (
anygoal [31]

Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

5 0
3 years ago
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