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gavmur [86]
2 years ago
9

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they ow

n. The new shares in this offering are priced at $19 plus 3 rights. The current market price of the stock is $26.80 a share. What is the value of one right? Provide your answer in dollars and cents, to the nearest $0.01.
Business
1 answer:
krok68 [10]2 years ago
7 0

Answer:

value of right = $1.95

Explanation:

given data

new shares =  $19 plus 3

current market price = $26.80

to find out

value of one right

solution

we get here value of  rights that is express as

value of rights = \frac{stock \ price - right\ subcription\ price}{no\ of\ right + 1}    .............1

value of rights = \frac{26.80-19}{3+ 1}

value of rights = \frac{7.8}{4}

value of right = $1.95

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Answer:

Gore is not required to make any accounting adjustments

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Gore won't be required to make any accounting adjustments because the litigation loss is already $2,000,000 leading to him recording a liability in his account in which

$5 million in legitimate warranty claims were as well filed by his customers which is why he won't be making any further Accounting adjustment in 2021.

4 0
1 year ago
After being influenced by frequent advertisements, Jeremy buys a new cell phone. However, he discovers that the new cell phone d
svetlana [45]

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Explanation: In simple words, actual value refers to the utility satisfaction that a customer receives after purchasing a product.

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1 year ago
Stephanie manages the accounting department at an advertising agency. She needs to conduct performance appraisals for the eight
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Answer:

The correct answer is behaviorally anchored rating scale.

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4 0
1 year ago
The Jensen family has owned Jensen's Country Furnishings since 1987 and Delores and Frank Jensen, grandparents and founders, mak
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Top-Level Management

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2 years ago
Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years,
erma4kov [3.2K]

Answer:

Explanation:

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