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gavmur [86]
4 years ago
9

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they ow

n. The new shares in this offering are priced at $19 plus 3 rights. The current market price of the stock is $26.80 a share. What is the value of one right? Provide your answer in dollars and cents, to the nearest $0.01.
Business
1 answer:
krok68 [10]4 years ago
7 0

Answer:

value of right = $1.95

Explanation:

given data

new shares =  $19 plus 3

current market price = $26.80

to find out

value of one right

solution

we get here value of  rights that is express as

value of rights = \frac{stock \ price - right\ subcription\ price}{no\ of\ right + 1}    .............1

value of rights = \frac{26.80-19}{3+ 1}

value of rights = \frac{7.8}{4}

value of right = $1.95

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The accounting concept which relates to separating the reporting of business economic transactions and personal economic transactions is <u>Business Entity Concept</u>.

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In accounting, a transaction in any monetary business enterprise occasion influences an agency's economic statements. because transactions consist of any event that has a financial impact on your economic facts, there are quite a few gadgets that are transactions. based mostly on the trade of cash, there are 3 kinds of accounting transactions, mainly cash transactions, non-cash transactions, and credit transactions.

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5 0
1 year ago
You are offered a chance to buy an asset for $4500 that is expected to produce cash flows of $750 at the end of Year 1, $1000 at
Ghella [55]

Answer:

22.64%

Explanation:

Given that

Buyed value of an asset = $4,500

Projected cash flows

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For year 2 = $1,000

For year 3 = $850

For year 4 = $6,250

So, the rate of return i.e internal rate of return is

We assume the internal rate of return be X%

$4,500 = $750 ÷ (1.0x) + $1000 ÷ (1.0x)^2 +$850 ÷ (1.0x)^3 + $6,250 ÷ (1.0x)^4

After solving this, the rate of return is 22.64%

8 0
3 years ago
Government regulations that prevent two firms from merging to become a monopoly address which type of market failure?
Kitty [74]
Market power because it is the ability of a firm to set on price of goods ( when both firms merges to have power over market
4 0
3 years ago
Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking
vazorg [7]

Answer:

lead generation

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Based on the information that is describing the situation at hand it seems that In terms of direct marketing, this is known as lead generation. This term refers to the activities or tasks that a company undergoes in order to attract potential customers towards their products or services. Which is what Four Seasons Hotels are doing by sending direct mail to their potential customers in order to attract them towards their hotels.

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3 years ago
Economists believe that scarcity is
krek1111 [17]

Answer:

Scarcity refers to the basic economic problem, the gap between limited  that is, scarce  resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.

HOPE THIS HELPED!!!!!!!!!!XDDDDD

8 0
3 years ago
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