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Dill owns five percent of the outstanding shares in Pickle Ltd,which has just announced a one...
Dill owns five percent of the outstanding shares in Pickle Ltd,which has just announced a one for five rights issue with a subscription price of $1.90.The current 'cum rights' price for Pickle shares is $2.20.If the number of outstanding shares in Pickle Ltd is 5000,what is the theoretical value of the right to one new share?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Tern Corporation has 2,000 shares of stock outstanding: Marina owns 700 shares, Russell owns 600 shares,...
Tern Corporation has 2,000 shares of stock outstanding: Marina
owns 700 shares, Russell owns 600 shares, Velvet Partnership owns
300 shares, and Yellow Corporation owns 400 shares. Marina and
Russell, unrelated individuals, are equal partners of Velvet
Partnership. Marina owns 25% of the stock in Yellow
Corporation.
a. Applying the § 318 stock attribution rules, determine how
many shares in Tern Corporation each shareholder owns, directly and
indirectly:
Marina: Velvet Partnership:
Russell: Yellow Corporation:
b. Assume, instead, that Marina owns...
Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that it...
Mr. Toriop owns 5000 shares of stock
in Yummy Corporation. The company has announced that it will pay a
dividend of $5 per share in one year and then a liquidating
dividend of $50 per share in two years. The required return on ABC
stock is 10%.
a. What is the current share price of
your stock?
b. What will be the company’s share
price in one year?
c. Mr. Toriop wishes to have
equal amount of dividend income for...
Mr. Toriop owns 5,000 shares of stock in Yummy Corporation. The company has announced that it...
Mr. Toriop owns 5,000 shares of stock in Yummy Corporation. The
company has announced that it will pay a dividend of $5 per share
in one year and a liquidating dividend of $50 per share in two
years. The required return on Yummy stock is 12%.
a. What is the current share price of your stock?
(1 mark)
b. What will be the company’s share price in one year’s time?
(1 mark)
c. Mr. Toriop wishes...
Mr. Toriop owns 5,000 shares of stock in Yummy Corporation. The company has announced that it...
Mr. Toriop owns 5,000 shares of stock in Yummy Corporation. The
company has announced that it will pay a dividend of $5 per share
in one year and a liquidating dividend of $50 per share in two
years. The required return on Yummy stock is 12%
. a. What is the current share price of your stock? (1 mark)
=44.32
b. What will be the company’s share price in one year’s time? (1
mark)=44.64
c. Mr. Toriop wishes to have...
Silver Corporation has 2,000 shares of common stock outstanding. Howard owns 600 shares, Howard’s grandfather owns...
Silver Corporation has 2,000 shares of common stock outstanding.
Howard owns 600 shares, Howard’s grandfather owns 300 shares,
Howard’s mother own 300 shares, and Howard’s son owns 100 shares.
In addition, Maroon Corporation owns 500 shares. Howard owns 70% of
the stock in Maroon Corporation. a. Applying the §318 stock
attribution rules, how many shares does Howard own in Silver
Corporation? b. Assume that Howard owns only 40% of the stock in
Maroon Corporation. How many shares does Howard own,...
Aligram Software Ltd has five million shares outstanding and its market price is $61 per share....
Aligram Software Ltd has five million shares outstanding and its
market price is $61 per share. The company has only two bonds
outstanding. Bond A is a 15-year bond issued four years ago, which
has a face value of $100 million and a coupon rate of 5%, and is
selling for 95% of the par value. Bond B is a five-year bond issued
one year ago, which has a face value of $60 million and a coupon
rate of 6.5%,...
Senior Company owns 100 percent of the outstanding shares of Junior. During the current year, Senior...
Senior Company owns 100 percent of the outstanding shares of
Junior. During the current year, Senior sold inventory costing
$90,000 to Junior for $100,000. Junior has resold all of this
merchandise to outside parties by the last day of the year. For the
year, Senior reported cost of goods sold of $600,000 and Junior
reported cost of goods sold of $500,000. What is the total amount
reported on the consolidated income statement for cost of goods
sold?
Jolly Company owns 60 percent of the outstanding shares of Sad. During the current year, Jolly...
Jolly Company owns 60 percent of the outstanding shares of Sad.
During the current year, Jolly sold inventory costing $90,000 to
Sad for $100,000. Sad has already transferred cash in full payment.
Sad still holds all of this inventory on the last day of the year.
At the balance sheet date, Jolly has total current assets of
$700,000 whereas Sad has total current assets of $400,000. Assume
that there were no allocations established at the date of
acquisition. What is...
8. Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that...
8.
Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The
company has announced that it will pay a dividend of $5 per share
in one year and then a liquidating dividend of $50 per share in two
years. The required return on ABC stock is
10%.
a. What is the current share price of
your stock?
(1 mark)
b. What will be the company’s share
price in one
year?
(1 mark)
c. Mr. Toriop wishes to have...
1. Mr. Toriop owns 5,000 shares of stock in Yummy Corporation. The company has announced that...
1. Mr. Toriop owns 5,000 shares of stock in Yummy
Corporation. The company has announced that it will pay a dividend
of $5 per share in one year and a liquidating dividend of $50 per
share in two years. The required return on Yummy stock is 12%.
(21 marks total)
a. What is the current share price of your stock?
(1 mark)
b. What will be the company’s share price in one year’s
time?
(1...
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