Answer:
Value of one right = $2.63
Explanation:
<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>
<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>
Value of rights= Theoretical ex-right price - Right price
<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>
Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues
<em />
1 unit of old share at $25.25 = $25.25
I unit of right share at $20.00= <u>$20.00</u>
Total value of 2 shares <u>$ 45.25</u>
Theoretical ex-rights price = 45.25/2 =$22.63
Theoretical ex-rights price=$22.63
Value of rights= Theoretical ex-right price - Right price
= 22.63 - 20.00
Value of one right = $2.63
Answer:
The state
Explanation:
Tyler holds a property inside the city furthest reaches of a town that is on the Mississippi River. According to the laws, the property is actually possessed by the state. Property owners possess the land under NON-traversable Rivers. Tyler can move around the property, and he can use it, but on papers, it is the property of the state, and Tyler cannot auction it or transfer it to anyone else.
Answer:
8.08
Explanation:
Hi!
The income elasticity of demand is calculated by dividing the negative % change in demand by the % change in real income.
We calculate the negative % change in demand as:
19/20 = 0.95, a 95%
Then, the % change in real income as:
(34,000-30,000)/34,000 = 0.1176, an 11.76%
So the income elasticity of demand is:
0.95/0.1176 = 8.08
Hope it helps! :)
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $640,000
Premium on bonds payable A/c Dr $23,970
Loss on bonds redemption A/c $8,030
To Cash A/c $672,000 ($640,000 × 1.05)
(Being the redemption of bond is recorded and the remaining balance is debited to the Loss on bonds redemption account)
The Premium on bonds payable is computed below:
= Carrying value of the bonds - face value of the bond
= $663,970 - $640,000
= $23,970
