XYZ Ltd currently has 1 million ordinary shares, each with a nominal value of $1. The company
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Question:
XYZ Ltd currently has 1 million ordinary shares, each with a nominal value of $1. The company wants to raise an additional $0.6 million and has decided to raise it by issuing new shares at $1.5 per share. Currently, the net assets of the company are worth $1.5 million.
Required: Calculate
(1) a total number of shares after the issue,
(2) the total value of net assets after the new issue, and
(3) the share premium that will be shown in the share premium account of the company’s capital reserve.
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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