Homework Answers
| Step 1 | Calculation of Theoritical Ex-rights price | ||
| Value of Bandit prior to rights issue (5,000,000*4) | 2,00,00,000.00 | ||
| Cash Raised from Rights (1,250,000*3) | 37,50,000.00 | ||
| No. of Right shares issued = 5,000,000/4 = 1,250,000 | |||
| Value after Rights issue | 2,37,50,000.00 | ||
| Theoritical Ex-Rights price | 3.80 | ||
| *23,750,000/(5,000,000+1,250,000) | |||
| Step 2 | Fair Value Element | ||
| Cash raised from Rights issue | 37,50,000.00 | ||
| Theoritical Ex-Rights price | 3.80 | ||
| No. of shares deemed to be issued at fair value | 9,86,842.11 | ||
| *3,750,000/3.8 | |||
| Step 3 | Bonus Element | ||
| No. of shares issued | 12,50,000.00 | *(1) | |
| No. of shares deemed to be issued | 9,86,842.11 | *(2) | |
| Bonus Element*(1)-(2) | 2,63,157.89 | ||
| Step 4 | Weighted Average Shares | ||
| 2016 | Shares at the year start (Assuming 5,000,000 shares were outstanding) | 50,00,000.00 | |
| add: Bonus step 3 | 2,63,157.89 | ||
| Weighted Average Shares | 52,63,157.89 | ||
| 2017 | Shares at the beginning of the year | 50,00,000.00 | |
| add: Bonus step 3 | 2,63,157.89 | ||
| add: shares issued at fair value (Step 2*6/12) | 4,93,421.05 | ||
| Weighted Average Shares | 57,56,579.95 | ||
| EPS Workings | |||
| 2016 Earnings available for Equity share holders | |||
| *0.54 cents*5000000 | 27,00,000.00 | ||
| Weighted Average shares during 2016 as per step 4 | 52,63,157.89 | ||
| EPS | 0.51 | ||
| 2016 Earnings available for Equity share holders | 30,00,000.00 | ||
| Weighted Average shares during 2016 as per step 4 | 57,56,579.95 | ||
| EPS | 0.52 | ||
| If bonus element is ignored,EPS | |||
| 2016 | *2,700,000/5,000,000 | 0.54 | |
| 2016 | *3,000,000/(5,000,000+5,493,421) | 0.55 |
Add Answer to:
Question #1 Bandit had in issue on June 1, 2017 5,000,000, $1 equity shares. Bandit made...
1. On 1 January 2019 Holmes had 1,200,000 ordinary shares in issue. On 31 March 2019,...
1. On 1 January 2019 Holmes had 1,200,000 ordinary shares in issue. On 31 March 2019, the company made a rights issue of 1 for 3 shares at $2. The market price of the share at the moment was $2.4. On 30 August 2019, the company made an issue at full market price of 50,000 shares. On 30 November 2019, Holmes made a 1 for 5 bonus issue. Profit for the year was $624,000. The reported EPS for year ended...
Starfruit. company in Hong Kong, comprised 5,000,000 fully paid ordinary draft statement com, a listed shares of...
Starfruit. company in Hong Kong, comprised 5,000,000 fully paid ordinary draft statement com, a listed shares of $1 each and 4,000,000 fully paid preference shares of S1 each. The of retained profits as at December 31, 2014 is as follows: Profit before tax 3,000,000 (500,000) Less: income tax expenses Profit for the year 2,500,000 Less : Dividends (400,000) Preference share dividends (250,000) Ordinary share dividends 1,850,000 Retained profits for the year 3,000,000 Retained profits at January 1, 2014 Retained profits...
Question 10 Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial...
Question 10 Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, Multigrain issued 500,000 common shares for $7.00 per share. Over the next year, Multigrain’s share price increased and the company issued 400,000 more shares at an average price of $8.50. During the next seven years, from 2010 to 2016, Multigrain earned net income of $920,000. They declared and paid cash dividends of $140,000. A 10% stock dividend was distributed to...
3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial...
3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part earned net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock...
Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity...
Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the Merck & Co., Inc., balance sheet. Merck & Co., Inc. Stockholders' Equity ($ millions) Dec. 31, 2017 Dec. 31, 2016 Common stock, $0.50 par value Authorized-6,500,000,000 shares Issued-3,577,103,522 shares in 2017 and 2016 $1,788 $1,788 Other paid-in capital 39,902 39,939 Retained earnings 41,350 Accumulated other comprehensive loss (5,226) 78,130 80,634 Less treasury stock, at cost: 880,491,914 shares in 2017 and 828,372,200...
Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering...
Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, Multigrain issued 500,000 common shares for $7.00 per share. Over the next year, Multigrain’s share price increased and the company issued 400,000 more shares at an average price of $8.50. During the next seven years, from 2010 to 2016, Multigrain earned net income of $920,000. They declared and paid cash dividends of $140,000. A 10% stock dividend was distributed to the shareholders...
a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public...
a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part earned net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock dividend...
Question 4 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In...
Question 4 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, it issued 350,000 common shares for $6.00 per share. Over the next year Multigrain’ share price increased, and the company issued 300,000 additional shares at an average price of $8. During the next seven years, from 2010 to 2016, It earned a net income of $920,000 and declared and paid cash dividends of $90,000. A 10% stock dividend...
Question 5 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In...
Question 5 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, it issued 500,000 common shares for $7.50 per share. Over the next year Multigrain' share price increased, and the company issued 400,000 additional shares at an average price of $9.00. During the next seven years, from 2010 to 2016, It earned a net income of $980,000 and declared and paid cash dividends of $140,000. A 5% stock dividend...
Q3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial...
Q3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part eamed net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock...
1. On 1 January 2019 Holmes had 1,200,000 ordinary shares in issue. On 31 March 2019, the company made a rights issue of 1 for 3 shares at $2. The market price of the share at the moment was $2.4. On 30 August 2019, the company made an issue at full market price of 50,000 shares. On 30 November 2019, Holmes made a 1 for 5 bonus issue. Profit for the year was $624,000. The reported EPS for year ended...
Starfruit. company in Hong Kong, comprised 5,000,000 fully paid ordinary draft statement com, a listed shares of $1 each and 4,000,000 fully paid preference shares of S1 each. The of retained profits as at December 31, 2014 is as follows: Profit before tax 3,000,000 (500,000) Less: income tax expenses Profit for the year 2,500,000 Less : Dividends (400,000) Preference share dividends (250,000) Ordinary share dividends 1,850,000 Retained profits for the year 3,000,000 Retained profits at January 1, 2014 Retained profits...
3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part earned net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock...
Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the Merck & Co., Inc., balance sheet. Merck & Co., Inc. Stockholders' Equity ($ millions) Dec. 31, 2017 Dec. 31, 2016 Common stock, $0.50 par value Authorized-6,500,000,000 shares Issued-3,577,103,522 shares in 2017 and 2016 $1,788 $1,788 Other paid-in capital 39,902 39,939 Retained earnings 41,350 Accumulated other comprehensive loss (5,226) 78,130 80,634 Less treasury stock, at cost: 880,491,914 shares in 2017 and 828,372,200...
a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part earned net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock dividend...
Question 5 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, it issued 500,000 common shares for $7.50 per share. Over the next year Multigrain' share price increased, and the company issued 400,000 additional shares at an average price of $9.00. During the next seven years, from 2010 to 2016, It earned a net income of $980,000 and declared and paid cash dividends of $140,000. A 5% stock dividend...
Q3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Parts issued 500,000 common shares for $7.00 per share. Over the next year, Big Auto Part's share price increased and the company issued 400,000 more shares at an average price of $8.50 During the five years from 2015 through 2019, Big Auto Part eamed net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock...
Most questions answered within 3 hours.
-
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 7 minutes ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 58 minutes ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 2 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 3 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 4 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 4 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 4 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 4 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 5 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 5 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 5 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 5 hours ago