The proceeds that UWD received will be as follows:
Number of shares 1,350,000
share price $24.62
Amount realized from the shares:
1,350,000×24.62
=33,237,000
Total amount to be deducted will be:
(Commission+Accounting fees+legal fees+printing costs+selling expenses)
commission=$1,661,850
Accounting fees=$450,000
legal fees=$1,225, 000
printing cost=$275,000
selling expenses=$300,000
Total=(1,661,850+450,000+1,225,000+275,000+300,000)
=$3,911,850
The amount received will be:
33,237,000-3,911,850
=$29,325,150
Answer:
Proceeds from sale of rights will be $49407.62
Explanation:
Proceeds from the sale of rights
=> Net Proceeds per share = Subscription price per share x (1 – Spread)
= $27 × (1 – 0.06)
= $25.38 per share
=> New shares offered = money raised/net proceeds per share
= 5300000/25.38 = 208826 Shares
=> Number of rights needed = current shares/New share offered
= 590000/208826 = 2.82532
=> The Ex-rights stock price will be
Ex-rights stock price = ((Number of rights needed × selling price per share) + Subscription price) + (Number of rights needed + 1)
= ((2.82532 × 54) + $27 per share) / (2.82532 + 1) = $46.94177 per share
So, the value of a right = Selling price per share - Ex-rights stock price
= $54 - $46.94177
= $7.05823 per share
Therefore, proceeds from selling the rights will be
= Number of shares × value of a right
= 7000 × 7.05823
= $49407.62
Proceeds from sale of rights will be $49407.62
Answer:To keep their money safe
Explanation:They would put it in there so their money will be kept safe
Answer:
Secondary data
Explanation:
secondary data is information which has been collected in the past by someone else. For example, researching the internet, newspaper articles and company reports.
