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Sergio [31]
3 years ago
8

Suppose you own 500,000 shares of common stock in a firm with 40 million total shares outstanding. The firm announces a plan to

sell an additional 5 million shares through a rights offering. The market value of the stock is $32.5 before the rights offering and the new shares are being offered to existing shareholders at a $2.50 discount. If you exercise your preemptive rights, how many of the new shares can you purchase?
Business
1 answer:
Roman55 [17]3 years ago
6 0

Answer:

62,500 shares

Explanation:

common stock = 500,000 shares

Total shares outstanding = 40 million

Percentage of existing holding:

= (Shares of common stock ÷ Total shares outstanding) × 100

= (500,000 ÷ 40,000,000) × 100

= 1.25%

New shares that can be purchased:

= Number of new shares sold × Percentage of existing holding

= 5 million × 1.25%

= 62,500 shares

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Question 2 of 10
gavmur [86]

Answer:

C.

Explanation:

The term used to define standards of behavior that governs individual's and companies conduct is ethics.

The term ethics is derived from the Greek word ethos, meaning, way of living. Ethics comes under the rubric of philosophy and is related to the subject of human conduct, especially concerning the actions of humans towards the society.

Ethics are those moral principles in which the conduct of companies and human behaviors are anchored.

Therefore, the correct answer is option C.

3 0
2 years ago
Kasen has left 30 acres of land to the First Church of Magnolia with the condition that it shall own and have rights to it forev
vichka [17]

Answer: Fee simple defeasible.

Explanation:

A fee simple defeasible is a transfer of property that has conditions placed on the property. The holder of a fee simple defeasible has the property as a "fee simple" subject to the given condition. In a case whereby the condition is not met or violated then the property will go back to the grantor or a specified third party.

In this case, if the first church of Magnolia allows alcohol to be sold on the land, the property will be given back to Kasen or his heirs.

5 0
3 years ago
BatCo makes metal baseball bats. Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. O
aalyn [17]

Answer:

Cost variance= 7 unfavorable

Explanation:

Giving the following information:

Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. Assume the actual cost to manufacture one metal bat was $40.

Estimated cost= 18 + 0.25*20 + 0.25*40= 33

Actual cost= 40

Cost variance= 7 unfavorable

5 0
3 years ago
True or false: you should measure the inputs to a restaurant process in customers and the outputs in dollars.
kondor19780726 [428]

You  should measure the inputs to a restaurant process in customers and the outputs in dollars is a false statement.

<h3>What is the flow of a restaurant?</h3>

This is known to be called the patron's flow and it is one that tends to originate from the entrance to the table of the host, and also   to the restrooms as well as the back out.

Note that Flow is seen as a form of volumetric flow rate and it is one that is  simply known to be the volume of fluid that moves per unit of time.

Therefore, saying that you should measure the inputs to a restaurant process in customers and the outputs in dollars is a false statement.

Learn more about restaurant process from

brainly.com/question/14672240

#SPJ1

3 0
1 year ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0
2 years ago
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