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 )
Answer:
-$560
Explanation:
The computation of capital gain on this investment is shown below:-
Capital gain = (Stock price - Paid shares) × Sold shares
where,
The Stock price is $30.92
Paid shares is $32.04
And, the sold shares is 500 shares
Now placing these values to the above formula
So, the capital gain on this investment is
= ($30.92 - $32.04) × 500
= -$1.12 × 500
= -$560
3000 (1+0.051)^(t)=2000 e^(0.075t)
Solve for t using Google calculator
To get
T=16.05 years
Answer:
At Price = 
Quantity demanded = 
At Price = 
Quantity Demanded = 
Now,
Above formula if used will give the correct answer related to Price Elasticity of Demand.
Another variant of above formula is also being used on prominent basis.
Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.
