1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marusya05 [52]
3 years ago
7

The Clifford Corporation has announced a rights offer to raise $10 million for a new journal, the Journal of Financial Excess. T

his journal will review potential articles after the author pays a nonrefundable reviewing fee of $6,000 per page. The stock currently sells for $60 per share, and there are 1 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Leave no cells blank - be certain to enter "0" wherever required.) b. If the subscription price is set at $50 per share, how many shares must be sold? How many rights will it take to buy one share? (Do not round intermediate calculations. Round your rights needed answer to 2 decimal places, e.g., 32.16.) c. What is the ex-rights price? What is the value of a right? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. A shareholder with 2,000 shares before the offering has no desire (or money) to buy additional shares offered as rights. What is his portfolio value before and after the rights offer? (Do not round intermediate calculations and round your answers to nearest whole number, e.g., 32.)
Business
1 answer:
kkurt [141]3 years ago
8 0

Answer and Explanation:

1. The maximum possible subscription price is $60

The maximum price is anything greater than $0

2.Number of new shares

$10,000,000/$50

=$200,000

Number of right shares

$1,000,000/$200,000

=$5

3. Excess right 58.33

(5*60+50)/(5+1)

Value of excess 1.67

($60-58.33)

4.Portfolio value before right offering

2,000×60

= 120,000

Portfolio value after right offering 120,000

(2000×58.33 +2000×1.67 )

You might be interested in
Martin Enterprises needs someone to supply it with 118,000 cartons of machine screws per year to support its manufacturing needs
Bezzdna [24]

Answer:

$15.66 per carton

Explanation:

118,000 cartons of machine screws

equipment cost $785,000

depreciation per year = $785,000 / 5 = $157,000

fixed manufacturing costs $415,000 per year

variable costs per carton = $10.05 x 118,000 = $1,185,900

initial investment in net working capital $68,000

tax rate 24%

discount rate 12%

price per carton?

initial investment = -$853,000

CF₁ = [(R - $1,600,000 - $157,000) x 0.76] + $157,000 = 0.76R - $1,178,320

CF₂ = [(R - $1,600,000 - $157,000) x 0.76] + $157,000 = 0.76R - $1,178,320

CF₃ = [(R - $1,600,000 - $157,000) x 0.76] + $157,000 = 0.76R - $1,178,320

CF₄ = [(R - $1,600,000 - $157,000) x 0.76] + $157,000 = 0.76R - $1,178,320

CF₅ = [(R - $1,600,000 - $157,000) x 0.76] + $157,000 + $68,000 = 0.76R + $1,110,320

$853,000 = (0.76R - $1,178,320) / 1.12 + (0.76R - $1,178,320) / 1.12² + (0.76R - $1,178,320) / 1.12³ + (0.76R - $1,178,320) / 1.12⁴ + (0.76R + $1,110,320 ) / 1.12⁵ = 0.6786R - $1,052,071.43 + 0.6059R - $939,349.49 + 0.541R - $838,704.90 + 0.483R - $748,943.66 + 0.4312R + $630,025.39

$853,000 = 2.7397R - $4,209,094.87

$5,062,094.87 = 2.7397R

R = $5,062,094.87 / 2.7397 = $1,847,682.18

total revenue = $1,847,682.18

revenue per carton = $1,847,682.18 / 118,000 = $15.6583 = $15.66

8 0
3 years ago
Best Buy does not play loud music in its stores, based on feedback that women don’t like it. A woman who arrived at Best Buy aft
ivanzaharov [21]

Answer:

D) Problem removal

Explanation:

Since it has been discovered that women don't like loud music, a woman who just left a loud music technology store for Best Buy stores that doesn't play loud music will have her 'problem removed'.

Best Buy store can be regarded as a problem removal store by helping women to solve their problem of listening to loud music.

Women Will have a good and problem removal experience in Best Buy Store.

Best Buy store has had an advantage against other stores because they don't play loud music and more women will patronise them, thereby, increasing their profits.

7 0
2 years ago
Read 2 more answers
OSHA standards appear in the ___________ and are then broken down into ____________. A. Code of Federal Regulations (CFR), Parts
antiseptic1488 [7]

ignore the other person, the correct answer is A. code of Federal Regulations (CFR), parts

3 0
3 years ago
The job of an ethics officer is to serve as a counselor for employees
quester [9]

True, an ethics officers' role is to act as a counsellor for employees as well as an investigator for the firm.

The Ethics Officer is the company's inner or internal control point for ethical and improper conduct, allegations, objections, and improprieties, as well as providing leadership and guidance on corporate governance problems.

Learn more:

brainly.com/question/18072443?referrer=searchResults

3 0
3 years ago
A customer has come to your department with an urgent question. You promised her that you would collect information about her qu
slamgirl [31]

Answer: ask for permission to arrive about 12:15 in the afternoon to the meeting and reply the customer question first.

Explanation:

Most of the actions taken inside a company are directed to customers' satisfaction, they are an important part of all business, so they have to be a priority. In this case, the worker can explain to the supervisor the urgent necessity of replying to the customer and the previous promise that has done of replying by noon. The supervisor may understand the important situation and summarize for the worker the 10 first minutes of the meeting; in this way the worker won't miss the meeting and will keep his commitment with the customer.

3 0
3 years ago
Other questions:
  • Reynolds Construction's value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows
    7·1 answer
  • All of the following individuals are U.S. residents: Kelly (27), her daughter Sydnee (4), and Kelly's mother, June (50). All thr
    8·1 answer
  • At the end of the car lease, you pay a certain amount if you decide to buy the car.. . What is this amount called?
    14·2 answers
  • On january 2, 2017, orange corporation purchased equipment for $300,000 with an ads recovery period of 10 years and a macrs usef
    8·1 answer
  • The team is struggling to agree on the Story point sizing of a new User Story. The Product Owner was previously a related domain
    5·1 answer
  • The efficiency wage​ ______. A. is paid by firms who​ can't directly monitor the work effort of their employees B. is equal to t
    9·1 answer
  • Bob is a student at Fresno State University who recently got his first F. Now he has to make a decision about how to get his gra
    8·1 answer
  • Which of the following is true with regard to a market segment? A market segment consists of consumers who respond in a similar
    8·1 answer
  • Determine the profit-maximizingLOADING... prices when a firm faces two markets where the inverse demand curves are Market​ A: p
    9·1 answer
  • Which situation best illustrates the role of households in the circular flow of
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!