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- The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the par value and received 40% downpayment. A month after 3,600 of said shares were in full while the rest paid an additional P20/share. By the end of the year, 500 of said subscribers were not able to pay and were declared as delinquent. How much would be debited as Receivable from highest bidder?The board of directors of Sizzy Company, whose USD50 par value share capital is currently trading at USD60 per share, has decided to declare a share dividend. The share dividend is not expected to have an impact on the selling price. Sizze Company, which has a total of 1,000,000 authorized shares; issued 500,000 shares, 100,000 of which are now held in treasury. Compute and determine the percentage that should be declared as a share dividend by the directors if USD2,400,000 of the retained earnings is charged?On January 20, Metropolitan Inc., sold 8 million shares of stock in an SEO. The market price of Metropolitan at the time was $40.25 per share. Of the 8 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.1% of the gross proceeds as an underwriting fee. a. How much money did Metropolitan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 3.4% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive?
- Papasa Ka Sa Quali Corporation earned P540,000 during the year. The shareholder’s equity is composed of 30,000, P10 par value ordinary shares and 20,000,P30 par value 10% cumulative preference shares throughout the year. The board of directors decided not to declare dividends to help the company recover from the effects of pandemic. How much is the earnings per share presented in the financial statement?On January 20, Sullivan Inc., sold 10 million shares of stock in an SEO. The market price of Sullivan at the time was $40.25 per share. Of the 10 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 6 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.5% of the gross proceeds as an underwriting fee. a. How much money did Sullivan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 2.7% on the announcement of the SEO and the new shares were sold at that price, how much money would Sullivan receive?XYZ Industries has 125 million shares outstanding and has a marginal corporate tax rate of 35%. XYZ announces that it will use $75 million in excess cash to investors repurchase shares. Shareholders had previously assumed that XYZ would retain this excess cash permanently. The amount XYZt's share price can be expected to change upon this announcement is closest to:
- Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stockpays dividends in the amount of $2 per share, but because of cash flow problems, the companydid not pay any dividends last year. The board of directors plans to pay dividends in the amount of$600,000 this year. What amount will go to preferred stockholders? How much will be availablefor common stock dividends?Jason Bond plc has 40 million ordinary shares of 100p each in issue. These shares are listed on the stock exchange at 160p. The directors of the company require additional long-term capital and have decided to make a one-for-four rights issue at 120p per share. An investor with 4,000 shares in Jason Bond plc has contacted you for investment advice. She is undecided whether to take up the rights issue, sell the rights, or allow the rights offer to lapse. She also informs you that she has savings of £10,000 in the bank. Please do not use £ or any other currency denomination. Just input you answer as a numerical figure without decimal places. Please do not use the ‘ separator or the ‘ as a decimal place. Just input you answer as a numerical figure without decimal places. Please do not use p (pence). Just input you answer as a numerical figure without decimal places. Questions: Calculate the market capitalisation(value) of the company before the rights issue? Answer Calculate the number of…At the time of starting its business, a company has only a cash account of $120,000 and a common stock account of $120,000 (par value: $1 each). The company issues new shares of $20,000 to the public at a price of $3. However, after the public offering, the share prices decline to $2.3. The company decides to buy back 8,000 of its shares. Assuming that the company applies par value method for accounting for treasury shares, what would be the total shareholders’ equity in the balance sheet at the end of all of these transactions? A) $41,600 B) $158,400C) $161,600D) $172,000E) Other (please specify)
- Rainbow Berhad required funds for a feasible project which will be beneficial to both the company and its shareholders. Instead of issuing loan notes, the funding was to be through a share issue. The public was than invited to subscribe to 40,000 ordinary shares of Rainbow Berhad on the 24 January 2021. The full price of the share was RM12 each. The board of directors decided that on application RM4.50 should be paid on application, and then the applicants should pay the allotment of RM2.50 one week after the allotment. The balance of the share money will be on one call.On the 25 February 2021, application closed with the issue oversubscribed by 8,000 shares, and share issue cost was paid amounted to RM1,500. On 8 March 2021, the directors allotted the shares, and it was decided that the shares are to be allotted on a pro- rata basis. Any excess of the application money will be held by the company as part of the allotment. On 15 March 2021, all the allotment money was received.On the…Bullant Inc. has decided to go public and has sold 2 million of its shares to its underwriter for $20 per share. The underwriter then sold them to the public for $22 each. Bullant also encountered $0.5 million in administrative fees. Soon after the issue, the stock price rose to $25. Find Bullant s total cost of this issue including any underpricing.Sarah the Company Secretary of Beta Plc, The company is a non-listed public company. She seeks your advice on the following matters. a) The Company has 100,000 £1 preference shares and 500,000 £1 ordinary shares. The Articles of Association provide that the preference shares carry the right to a 12% preference divided and a prior right to the return of their capital on winding up. They have no right to reduce the preference divided from 12 to 8 percent. The company plans to allot an additional 30,000 ordinary shares with a nominal value of £1 to Roger for £1.30 each. Roger cannot afford to pay for the shares in full and has suggested that the company allows him to pay £1 per share, and that he acts as the Company legal advisor for the next three months in order to pay for the premium. Alternatively, he has suggested that the company get registered as a private limited company. Roger will then arrange a loan of £39,000 from his bank which will be guaranteed by the Company.
