The extract balance sheet of a company showed the following:20202021Debentures 10%Share capital £1 each£400,000£500,000£750,000 £1,250,000During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares.In addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinaryshares of £1 each was made at a premium of £0.50 per share.The cash flow from financing activities is:Select one answer:O £200,000O £500,000O £400,000O £300,000

Solution:- Cash flow from financing activity means flow of cash from sources of capital; either…

The extract balance sheet of a company showed the following: 2020 2021 Debentures 10% £500,000 £400,000 Share capital £1 each £750,000 £1,250,000 During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares n addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinary shares of £1 each was made at a premium of £0.50 per share The cash flow from financing activities is Gelect one answer: O £200,000 O £500,000 D £400,000 D £300,000

The extract balance sheet of a company showed the following: 2020 2021 Debentures 10% £500,000 £400,000 Share capital £1 each £750,000 £1,250,000 During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares n addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinary shares of £1 each was made at a premium of £0.50 per share The cash flow from financing activities is Gelect one answer: O £200,000 O £500,000 D £400,000 D £300,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 4P

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