Answer:
Explanation:"C": Spreading risk by investing your money in a variety of funds and investment options.
Go
Answer:
The price per share of equity is $37.083
Explanation:
The first capital structure is purely equity based and Guld Shores will sell 300000 shares at price x to raise the needed capital.
The second structure is a mixed or leveraged structure where both debt and equity components are involved. The capital that needds to be raised remains constant.
Gulf has to give up 300000 - 252000 = 48000 shares and raise 1.78 million dollars from debt. We assumed that the amount that Gulf will raise is the ame from both th structures. Then 48000 shares at price x are equal to $1.78 million debt.
So, Price per share of equity is,
1,780,000 = 48000x
1780000 / 48000 = x
x or price per share = $37.083
Answer:
PURCHASE PRICE OF THE RIGHT STOCK (75 * $90) = $6750
LESS- SELL PRICE OF THE RIGHT (25 * $22) =($550)
TOTAL COST OF THE RIGHT STOCK = $6200
NO OF RIGHT STOCK PURCHASED = 75
PRICE PER STOCK = $82.67
SALE PRICE OF THE RIGHT (25 * $22) =$550
LESS- PURCHASE PRICE OF RIGHT = NIL
TOTAL CAPITAL GAIN ON SALE = $550
