A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a:
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A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a:
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- A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a: A. Golden parachute B. Poison pill C. White knight D. Classified boardWhich of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issueGW Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called? Multiple Choice Markup Commission Rights price Spread Offer
- Upon exercising share options, the resulting increase in the additional paid-in capital would be equal to a. The difference between the fair value of the shares and the par value of the shares, plus the fair value of the share options b. The difference between the exercise price and the par value of the shares c. The difference between the fair value of the shares and the par value of the shares d. The difference between the exercise price and the par value of the shares, plus the fair value of the share optionsThe intrinsic value of a share option is a. subscription price less fair value of option b. fair value of option less subscription price c. fair value of shares less subscription price d. subscription price less fair value of sharesThe intrinsic value of a share option is fair value of shares less subscription price fair value of option less subscription price subscription price less fair value of shares subscription price less fair value of option
- Which of the following correctly indicates how the issue price of common stock shares would be valued when a corporation makes a follow-on issue? Market forces determine the selling price, as it is marketed by the selling group The highest expected issue price per share that can be obtained while still selling of all of the shares is selected The highest expected issue price per share that can be obtained, regardless of the selling group's ability to market the shares, is selected The market price of existing shares is used as guidanceplease answer it with a solution. REQUIRED: DETERMINE THE FAIR VALUE OF THE SHARES ISSUED BY BENI CO. TO ACQUIRE PATTY.According to IFRS, once the total compensation is measured at the date of grant A. It can be changed in future periods related to a change in market conditions B. It can be changed to reflect the rise or fall in the market price of the company's ordinary shares C. A company is permitted to adjust tge number of share options expected to the actual number of instruments vested D. All of the choices are correct
- Discuss the following statement. Even when shares are sold at a discount, equity rights issues are fair while private placements are not fair.How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a willing seller agree to buy/sell a share of stock, who can say if the share is over-valued? What are some of the traditional tools to determine if a stock is over-valued or under-valued?Which of the following statement is true? a. In brokered markets, buyers and sellers confront each other directly and bargain over price. b. Primary market is the market for trading outstanding securities. c. Preference shareholders have a higher priority claim on company’s assets than ordinary shareholders in the event of insolvency. d. Ordinary shareholders receive fixed dividend payments.
