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Answer:
2.072 rights
Explanation:
Amount needed to buy the land = $8.6 million = $8,600,000
stock outstanding = 540,000
Market price per share = $34.80
subscription price = $33 a share
Now,
Number shares to be issued = ( Amount needed ) ÷ ( subscription price )
= $8,600,000 ÷ $33
= 260606.06 shares
1 rights will be issued per stock
thus,
number of rights required for purchase
= ( stock outstanding ) ÷ ( Number shares to be issued )
= 540,000 ÷ 260606.06
= 2.072 rights
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Answer:
$27,800
Explanation:
Given that
Government Divisional segment margin = $40,300
Export Products Division = $92,700
Common fixed expenses = $105,200
The computation of net operating income is shown below:-
Total segment margin = Government divisional segment margin + Export Products Division
= $40,300 + $92,700
= $133,000
Net operating income = Total segment margin - Common fixed expenses
= $133,000 - $105,200
= $27,800