In May 2016, GOIL Ghana Limited announced a renounceable rights issue. GOIL would issue shares of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In May 2016, GOIL Ghana Limited announced a renounceable rights issue. GOIL would issue shares of no par value, and at a price of GHS 1.24 per share and in a ratio of 0.5536 new shares for one held by a qualified shareholder. At the time of the announcement, GOIL's issued shares stood at 252,22 million. These shares were trading at GHS 1.38 per share. "Proceeds from the offer would be used to strengthen GOIL's balance sheet, expand its current retail outlets, acquire a lubricant blending plant, and expand facilities at the Takoradi Harbour, among others." market capitalization. Goil all outstardig nyba Questions i ii. How much does GOIL expect to raise if all rights are exercised? What will be GOIL's theoretical market value if all rights are exercised? How many rights will be issued? GOIL, is listed in Ghana? iii. iv. For how much could shareholders not willing to exercise sell their rights? V. What is the ex-rights price of a share? not having the might again huge no of job b. Developments in stock markets Markets ended in negative territory on Monday following the addition of a staggering number of jobs to the U.S. economy. The report led to a surge in interest rates, resulting in benchmark 10-year yield rising to their highest levels since 2014. All the major benchmarks ended in the negative territory, with Dow posting its sixth biggest daily decline since inception. The Dow Jones Industrial Average (DJI) decreased 2.5%, to close at 24,345. The S&P 500 fell 4.1% to close at 2,648.94. The tech-laden Nasdaq Composite Index closed at 6,967.53, losing 3.7%. The S&P/TSX (Toronto) dropped 271 points to close at 15,334.80 2719. i. By these huge drops in all four indices, what message do you think investors are sending out? ii. 111. Give a plausible explanation for the suggestion that an addition of a staggering number of jobs to the U.S. economy will unsettle financial markets. At what level did the S&P/TSX start trading on February 5, 2018? a) In the 2020 accounting year, i. ii. 111. The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends. On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends. It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits. a. What could be the reason for these decisions and choice of dividend payments by the boards of these companies? What do you think will be the effect of such decisions on the outstanding number of shares and the share prices of these companies? b. In May 2016, GOIL Ghana Limited announced a renounceable rights issue. GOIL would issue shares of no par value, and at a price of GHS 1.24 per share and in a ratio of 0.5536 new shares for one held by a qualified shareholder. At the time of the announcement, GOIL's issued shares stood at 252,22 million. These shares were trading at GHS 1.38 per share. "Proceeds from the offer would be used to strengthen GOIL's balance sheet, expand its current retail outlets, acquire a lubricant blending plant, and expand facilities at the Takoradi Harbour, among others." market capitalization. Goil all outstardig nyba Questions i ii. How much does GOIL expect to raise if all rights are exercised? What will be GOIL's theoretical market value if all rights are exercised? How many rights will be issued? GOIL, is listed in Ghana? iii. iv. For how much could shareholders not willing to exercise sell their rights? V. What is the ex-rights price of a share? not having the might again huge no of job b. Developments in stock markets Markets ended in negative territory on Monday following the addition of a staggering number of jobs to the U.S. economy. The report led to a surge in interest rates, resulting in benchmark 10-year yield rising to their highest levels since 2014. All the major benchmarks ended in the negative territory, with Dow posting its sixth biggest daily decline since inception. The Dow Jones Industrial Average (DJI) decreased 2.5%, to close at 24,345. The S&P 500 fell 4.1% to close at 2,648.94. The tech-laden Nasdaq Composite Index closed at 6,967.53, losing 3.7%. The S&P/TSX (Toronto) dropped 271 points to close at 15,334.80 2719. i. By these huge drops in all four indices, what message do you think investors are sending out? ii. 111. Give a plausible explanation for the suggestion that an addition of a staggering number of jobs to the U.S. economy will unsettle financial markets. At what level did the S&P/TSX start trading on February 5, 2018? a) In the 2020 accounting year, i. ii. 111. The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends. On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends. It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits. a. What could be the reason for these decisions and choice of dividend payments by the boards of these companies? What do you think will be the effect of such decisions on the outstanding number of shares and the share prices of these companies? b.
Expert Answer:
Answer rating: 100% (QA)
Answer i To calculate how much GOIL expects to raise if all rights are exercised we need to first determine the number of new shares that will be issued The ratio of new shares to existing shares is 0... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Following approval by Starwin Products Limiteds (SPL or the Company) shareholders at their Annual General Meeting on 19 June 2013, the Company embarked on a Renounceable Rights Issue (Offer) of...
-
Requirement 1. Journalize the partners' initial contributions. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the...
-
This chapter stressed the importance of information technology for understanding how accounting information systems operate. But is this the only skill valued by employers? How important do you think...
-
Determine the x-and y-intercepts on the graph of the equation. Graph the equation. 6x - 7y = -42
-
Texas Inpatient Consultants, LLLP, is a partnership that employs physicians to deliver medical care to hospitalized patients of other physicians. Texas Inpatient recruited Julius Tabe, M.D., to work...
-
Sally has an online poster business. Suppose Sally expects to sell 1,500 posters. Her average sales price per poster is $ 45 and her average cost per poster is $ 25. Her fixed expenses total $...
-
Question 5 Consider a situation where there are two polluters. The government decides to set up a cap and trade system to regulate pollution. The government would like to allow 100 units of pollution...
-
A passive long only Equity portfolio Manager with asset under management (AUM) of $ 1.5 Billion has the following investments: Index Dow Jones S&P 500 FTSE 250 TSX 100 DAX performance CAC 40 SENSEX...
-
Writing a function: MaxValue() Write a local function named MaxValue that returns the maximum of two inputs numA and numB. Your Function 1% Do not modify CalculateSum function maxSum =...
-
R Capertee, who uses control accounts, raised a tax invoice for $1342 ($1220 + $122 GST) to B Cider but it has been incorrectly allocated through the sales journal to B Spider. Prepare the general...
-
Motor vehicle expenses of $1735 had been incorrectly allocated and posted from the purchases journal to the motor vehicle account. Prepare the general journal to correct this error.
-
June 2022 tax invoices from L George $187 ($170 + $17 GST) for stationery and R Macquarie $583 ($530 + $53 GST) for vehicle expenses had not been processed through the June purchases journal. You are...
-
Which of the alternatives below most correctly answers the following statement? A trial balance will reveal errors where: a transactions are duplicated in the entry from the journal to the general...
-
A new computer was purchased on 31 October 2021 for $5445 ($4950 + $495 GST) with nil residual value. It is to be depreciated at 33.33% p.a. using the straight line method, with year end being 30...
-
. The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account. A) False B) True 2. Nonmanufacturing costs are generally classified into two...
-
A heat engine has a heat input of 3 Ã 104 Btu/h and a thermal efficiency of 40 percent. Calculate the power it will produce, in hp. Source 3 x 10 Btu/h 40% HE Sink
-
Summit Holdings Corporation (SHC) is a diversified Canadian company based in Winnipeg. SHCs primary business is the distribution and retailing of pharmaceutical and health care products. Its shares...
-
Glamour Mining Ltd. currently has a debt to equity ratio of 2.5-to-1, based on $80 million of debt and $32 million of equity. The company is looking to raise $16 million in new financing and must...
-
Refer to the information provided in TR22-1 and in TR22-2. Data From TR 22-1 Riyers Inc. has the following selected information for its years ended June 30: Required: Calculate the...
-
From the following account balances of Josland at 31 December 20X2 prepare a balance sheet in both T-format and narrative classified format. Cash at bank $113 500 Accounts receivable (net) 52 400...
-
Flightboat Ltd borrowed $60 000, issued $20 000 worth of ordinary shares, paid a dividend of $50 000 and the owner withdrew $10 000 in cash. What was Flightboats net cash provided (used) by financing...
-
Obtain the Woolworths 2018 annual report and answer the following questions. Required: 1 How does Woolworths report on its corporate responsibility? 2 List three important points the CEO makes...
Study smarter with the SolutionInn App