Measures the value that a buyer places on a good
Answer:
All net income, less all dividends, since the company began operations.
Explanation:
Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.
Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.
Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.
Answer:
Value of one right = $2.63
Explanation:
<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>
<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>
Value of rights= Theoretical ex-right price - Right price
<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>
Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues
<em />
1 unit of old share at $25.25 = $25.25
I unit of right share at $20.00= <u>$20.00</u>
Total value of 2 shares <u>$ 45.25</u>
Theoretical ex-rights price = 45.25/2 =$22.63
Theoretical ex-rights price=$22.63
Value of rights= Theoretical ex-right price - Right price
= 22.63 - 20.00
Value of one right = $2.63
