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weqwewe [10]
3 years ago
15

Associated Breweries is planning to market alcohol-free beer. To finance the venture it proposes to make a rights issue at $10 o

f one new share for each two shares held. (The company currently has outstanding 100,000 shares priced at $40 a share.) Assuming that the new money is invested to earn a fair return, give values for the following:
a) number of new shares,
b) amount of new investment,
c) total value of company after issue,
d) total number of shares after issue,
e) stock price after the issue,
f) the rights issue will give the shareholder the opportunity to buy one new share for less than the market price. What is the value of this opportunity?
Business
2 answers:
Ludmilka [50]3 years ago
8 0

Answer:

A) Number of new shares:

100,000×(1÷2) = 50,000

B) Amount of new investment:

50,000×$10 = $500,000

C) Total value of company after issue:

$500,000+100,000×$40 = $4,500,000

D) Total number of shares after issue:

100,000+50,000 = 150,000

E) Stock price after issue:

$4,500,000÷150,000 = $30

Explanation:

Tomtit [17]3 years ago
3 0

Answer:

Number of new shares:

= 100,000×(1÷2)

= 50,000

Amount of new investment:

= 50,000×$10

= $500,000

Total value of company after issue:

= $500,000+100,000×$40

= $4,500,000

Total number of shares after issue:

= 100,000+50,000

= 150,000

Share price after issue:

= $4,500,000÷150,000

= $30

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Olegator [25]

Answer:

XX date. Acquisition of land in exchange for treasury stock.

Dr Land $1,550,000

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    Cr Paid in Capital $225,000

Explanation:

Since the corporation uses the cost method, the transaction is recorded at purchase value regardless of current stock price.

treasury stock = 25,000 x $53 = $1,325,000

paid in capital = ($62 - $53) x 25,000 = $225,000

cost of the land = $1,325,000 + $225,000 = $1,550,000

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Shiro enrolled in Composition 101, a three-credit course. If this class meets twice a week, how long should Shiro expect each cl
irina1246 [14]

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Explanation:

Three-credit course shall mean a three hour class each week. Three hours =  \times 60 minutes = 180 minutes.

Since it is provided that there will be two classes each week, the duration of each class shall be = \frac{180}{2} = 90 minutes.

With this the three-credit course condition shall be fulfilled.

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Suppose the GDP is in equilibrium at full employment and the MPC is .80. If government wants to increase its purchase of goods a
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Answer:

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Answer:

7. $41,000

Explanation:

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