Q1 )The aluminum company seeks to increase the capital by an amount of 20 million riyals...
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Q1 )The aluminum company seeks to increase the capital by an amount of 20 million riyals by issuing new shares at a subscription price of 10 riyals and granting subscription rights to existing shareholders. The current shares amount to 4 million shares and the stock price is 30 riyals. Required: A) How many shares should be sold? What is the right to sell one share? (Degree). B) What is the price after subscription (Ex-rights), and what is the value of the subscription right? If you have an opportunity to buy the subscription right for 1 riyal, will you accept it? (2 degrees) Q1 )The aluminum company seeks to increase the capital by an amount of 20 million riyals by issuing new shares at a subscription price of 10 riyals and granting subscription rights to existing shareholders. The current shares amount to 4 million shares and the stock price is 30 riyals. Required: A) How many shares should be sold? What is the right to sell one share? (Degree). B) What is the price after subscription (Ex-rights), and what is the value of the subscription right? If you have an opportunity to buy the subscription right for 1 riyal, will you accept it? (2 degrees)
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Related Book For
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
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