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Vikentia [17]
3 years ago
13

ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders

need 10 rights to subscribe to 1 new share at a price of $19. Fractional shares can be rounded up to purchase 1 full share. As of Wednesday, December 1st, the stock is trading at $24.50. The value of the right is:
Business
1 answer:
Katyanochek1 [597]3 years ago
6 0

Answer:

10 existing share @ $24.50 = 245.00

<u>1 </u>new share @ $10.00          = <u>10.00</u>

<u>20</u>                                            <u> 255.00</u>

Theoretical ex-rights price = $255.00/20 = $12.75

Value of the right = Market price - Theoretical ex-rights price

                             = $24.50 - $12.75

                             = $11.75

Explanation:

In this respect, there is need to determine the theoretical ex-rights price. The theoretical ex-rights price is calculated as number of existing shares multiplied by the subscription price plus the number of rights multiplied by the current market price. Then, we will divide the total value of shares obtained by the total number of shares. finally, the value of a right is calculated as current market price minus theoretical ex-rights price.

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Flitter reported net income of $25,500 for the past year. at the beginning of the year the company had $216,000 in assets and $6
Brut [27]

Answer:

There are two ways in which Return on Assets can be calculated depending on whether we consider Total assets at year-end or average total assets.

Return on Assets = \frac{Net Income}{Total Assets at year end}   1

                                                          or

Return on Assets = \frac{Net Income}{Average Assets}       2

Substituting the values in equation 1 we get,

Return on Assets = \frac{25500}{316000}

Return on Assets = \frac{25500}{316000}

Return on Assets = 0.080696203  or 8.07%

Substituting values in equation 2 we get,

Return on Assets = \frac{Net Income}{Average Assets}

Return on Assets = \frac{Net Income}{\frac{Assets at beginning + Assets at year end}{2}}

Return on Assets = \frac{25500}{\frac{216000 + 316000}{2}}

Return on Assets = \frac{25500}{266000}

Return on Assets = 0.095864662 or 9.58%

5 0
3 years ago
What is the term for media for broad popular audiences—including newspapers, radio, and television?.
astra-53 [7]

Answer:

Mass media

Example

Mass media is actually the primary means of communication for the general public to communicate with each other as well as on a grander level. The most popular types of mass media include Newspapers, Radio, Television, Internet, Magazines.

8 0
3 years ago
Why do parties get into argument ?
raketka [301]

Answer:

Attached are causes of arguments between or among parties

Mark my answer brainliest

8 0
3 years ago
Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an
Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 =  291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0
3 years ago
2. If a company complies with government regulations, it incurs A. reputation costs. B. court costs. C. implementation costs. D.
Ede4ka [16]
If a company complies with government regulations, it incurs implementation costs. When a company decides to agree and follow new regulations, it will have to implement them into their organization. By implementing them, they are making changes within their organizations processes and therefor having costs associated with the changes. 
3 0
3 years ago
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