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Vikki [24]
3 years ago
7

Prahm Corp. wants to raise $4.4 million via a rights offering. The company currently has 500,000 shares of common stock outstand

ing that sell for $45 per share. Its underwriter has set a subscription price of $20 per share and will charge the company a spread of 6 percent. If you currently own 3,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?
Business
1 answer:
Pavel [41]3 years ago
6 0

Answer:

price for selling 3000 share right is $25060.87

Explanation:

Given data:

Total Amount raised=   $4,400,000  

Spreading rate = 6%

Subscription price =   $20 per share

Number of share owned by company = 500,000

Per share cost  = $45

Totals share own in the company = 3000

subscription price after deducting spreading rate = 20\times (1 -0.06) = $18.80

Now, Right share = \frac{4400000}{18.8} = 234,043

Right price is calculated as

Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)

plugging all value in above relation

                 = \frac{500000 \times 45 + 234043\times 18.8}{500000 + 234043}

Right share = $36.65

single right value = 45- 36.65 = $8.35

Price for 3000 share right = 8.35 *3000 = $25060.86

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Broad banding eliminates layers in pay grades requiring organizations to find other ways to reward employees. False

  • A technique called "broad banding" replaces a large number of small wage ranges with a smaller number of larger compensation ranges when evaluating and building a job grading structure. Establishing what is necessary to pay for a certain position with help from broad banding.
  • Payroll departments employ broadband for human resource management. When deciding how much to pay specific roles and the incumbents in those positions, a job grading structure known as "broadcasting" lies somewhere between using spot salaries and several job grades. Broad banding does provide some broad job classifications to the business that uses it, but it does not have as many discrete job grades as do traditional compensation systems.

Thus this is the answer.

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6 0
2 years ago
Telstra, Australia's largest telecommunications and media company, has net revenue of more than $ 26 billion (Australian). Some
klasskru [66]

The items included in its recent annual consolidated Dividends statement of cash flows presented using the direct method are listed.

1. Receipts from customers ------------- Operating Activities (O)

2. Dividends paid ----------- Financing Activities (F)

3. Payment for share buyback --------- Financing Activities (F)

4. Proceeds from the sale of property, plant, and equipment ------  Investing Activities (I).

5. Repayments of borrowings ------- Financing Activities (F)

6. Income taxes paid  ------------ Operating Activities (O)

A dividend is a distribution of profits by means of a business enterprise to its shareholders. while a organization earns a profit or surplus, it is able to pay a percentage of the earnings as a dividend to shareholders. Any quantity now not dispensed is taken to be re-invested within the commercial enterprise.

Dividends are bills a business enterprise makes to share earnings with its stockholders. they're paid on an ordinary basis, and they're one of the methods investors earn a return from making an investment in stock.

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4 0
2 years ago
Bullie Jean has $1.20 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music whi
Rasek [7]

Answer: b. people face trade-offs

Explanation:

From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.

We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.

6 0
3 years ago
THe section of the comprehensive annual finanial report that presents tables and charts showing social and econimoc data in addi
posledela

Answer:

Statistical Section

Explanation:

The statistical section of comprehensive annual financial report contains details of  most of PESTLE factors in numeric terms that shows to what extent these things will either affect or help the organization in near future.

3 0
3 years ago
A. Define progressive income tax. Briefly create a few numbers to explain it.
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How do i sent it to you
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3 years ago
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