Compute amount of new investment

Assignment Help Finance Basics
Reference no: EM1358787

Associated Breweries is planning to market unleaded beer. The finance the venture, it proposes to make a right issue with a subscription price of 10.00 One new share can be purchased for each two shares held. The company currently has outstanding 100,000 shares priced at 40.00 a share. Assuming that the new money is invested to earn a fair return give values for the:

1. number of shares, 2. amount of new investment, 3. total value of company after issue, 4. total number of shares after issue and 5. share price after the issue

 

Reference no: EM1358787

Questions Cloud

How many revolutions does the ball make during its fall : How many revolutions does the ball make during its fall. Now assume that the ramp is frictionless, so that the ball slides instead of rolling. Through what horizontal distance d does the ball move before landing in this case.
Leaders and mental models;difficulty in changing assumptions : Why is it so hard for people to change their assumptions? What are some specific reasons leaders need to be aware of their mental models?
Providing a neurological explanation : If we learn what we remember and remember what we learn, provide a neurological explanation "the best you can with current findings"of why people with Alzheimer's disease forget what they have learned and may have known for decades.
Changing communication styles : How would you change your communication style when speaking to members of different generational groups?
Compute amount of new investment : Associated Breweries is considering to market unleaded beer. The finance the venture, it proposes to make a right issue with a subscription price of 10 One new share can be buy for each two shares held.
Diversity initiatives to manage multi-generational workforce : what diversity initiatives can organizational leaders implement to manage effectively their multi-generational workforce?
What is the maximum tension : What is the maximum tension. The gastrocnemius muscle, in the back of the leg, has two portions, known as the medial and lateral heads. Assume that they attach to Achilles tendon. The cross-sectional area of each of these two muscles is typically f..
Traditional marriage and its cultural values in ewe land : Write a paper on  Traditional Marriage and its cultural values in Ewe land.
Establishment of 1231 assets : Why did Congress establish favorable treatment for 1231 assets?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Hadlock industries cash flow

Determine Hadlock Industries' Cash Flow from Financing for the year ending 6/30/2011

  Trader breakeven with a profit of zero

Explain what two values of the stock price in three months does the trader breakeven with a profit of zero?

  Purchasing stock on leverage

You have $40,000 to invest on Sophie Shoes, a stock selling for $80 a share. The intial margin requirement is 60%. Ignoring taxes & commissions,

  Definition of capital structure

What do you understand by a Capital Structure? What basic principles will you advocate in matter of deciding on a proper pattern of capital structure for company?

  Calculating beta

Find out the company stock that has at least five years of quarterly return data (60 data points). Find out what the company Beta is by running a regression.

  Cost allocation using direct method

Cost allocation using Direct method allocate costs to the mission centers using the direct distribution method

  Objective type questions cost of capital based on capm

Objective type questions Cost of Capital based on CAPM and Companies can issue different classes of common stock

  Computation of future value of a lump sum amount

Computation of future value of a lump sum amount and what recommendation would you make to Jeanie

  Computation of operating cash flows

Computation of Operating Cash flows and described in the module and verify that the answer is the same in each case

  Determine current share price

Baruk Industries has no cash and a debt obligation of 36 million dollar that is now due. The market price of Baruk's assets is 81 milliondollar , and the firm has no other liabilities.

  Computation of present value of payments for future return

Computation of present value of payments for future return and leaving the account empty when the last payment is made

  Explain the needs approach

Sue and Tom Wright are assistant professors at the local university. They each take house about $42,000 per year after taxes. Sue is 37 years of age, and Tom is thirty-five.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd