On July 1,2019, ABC Company issued rights to shareholders to subscribe to additional ordinary shares. One...
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On July 1,2019, ABC Company issued rights to shareholders to subscribe to additional ordinary shares. One right was issued for each share owned. A shareholder could purchase one additional share for ten rights plus P 60 cash. The rights expire on September 30,2019. On July 1,2019, the market price of a share with the right attached was P 160 while the market price of one right alone was P 8. ABC Company's shareholder's equity on June 30,2019 comprise the following: Ordinary share capital, P100 par (4,000 shares issued and outstanding) P 400,000 Share premium 240,000 Accumulated profits 320,000 Assuming on July 31,2019, 2,500 share rights were exercised, by what amount would ABC company's total shareholder equity increase as a result of the exercise of share rights? On July 1,2019, ABC Company issued rights to shareholders to subscribe to additional ordinary shares. One right was issued for each share owned. A shareholder could purchase one additional share for ten rights plus P 60 cash. The rights expire on September 30,2019. On July 1,2019, the market price of a share with the right attached was P 160 while the market price of one right alone was P 8. ABC Company's shareholder's equity on June 30,2019 comprise the following: Ordinary share capital, P100 par (4,000 shares issued and outstanding) P 400,000 Share premium 240,000 Accumulated profits 320,000 Assuming on July 31,2019, 2,500 share rights were exercised, by what amount would ABC company's total shareholder equity increase as a result of the exercise of share rights?
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1 Determine the total cash received from the exercise of share rights Total cash received Number of ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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