Write a report to the owners detailing

Assignment Help Financial Accounting
Reference no: EM13487223

Part A:

The last few years have been difficult economically but the owners of Johnsons P/L, a medium-sized manufacturer of quality dining furniture is keen to grow the business. They have seen an increase in demand for their products from overseas and feel that they will need to increase their operation in order to continue to meet this demand. They are currently looking at a number of options to finance this expansion such as through debt and through equity raising (meaning they will need to "go public"). They have determined that they need to raise $60 million.

Giving consideration to the various options, you have been requested to advise the owners of Johnsons what the various options are, outlining the positives and negatives of each.

Required: write a report (should be extensive) to the owners detailing ALL the different options and considerations that you feel the owners should consider raising the $60 million.

Part B

Regardless of the advice you have given (Part A), the owners have decided to go "public" and issue an 'IPO" They issue 30 million shares ($2.00), of which the payment on application is to $0.80 per share (closes 18th April 2013), $0.50 four weeks after allocation (allocation is 13th May 2013) and the remaining amount to be paid on 30th July 2013 (the call will be made on 30th June). The IPO attracts requests for 30.4 million shares. In this case, it exceeds the allowable number of shares and the directors decide to apply the "first-come, first-served" approach and return the excess back to the unlucky applicants

Required: You are to journalise the events (including dates and notations). You should assume that all monies were received on 18th April (applications). What other option did the directors have with the excess demand, returning the excess?

Reference no: EM13487223

Questions Cloud

Find the cutoff wavelength for this metal : When a metal is irradiated with 410-nm photons, the stopping potential is 1.2 eV. Find the cutoff wavelength (in nm) for this metal
Is it a necessary and sufficient condition for leadership : Is it possible to talk about superficial (unauthentic) CSR as compared to embedded (authentic) CSR? Alternatively, do organisations either have or do not have CSR? What arguments would support either of these views?
State what is the final temperature of the mixture : If 45.0mL of ethanol {(density = 0.789 g/mL) initially at 9.0 degrees C is mixed with 45.0mL of water (density} = 1.0g/mL) initially at 28.3 degrees C in an insulated beaker, and assuming that no heat is lost, what is the final temperature of the m..
Whether juan has to pay australian tax on any of his salary : On 1st October 2012, company EndX Pty. Ltd. purchased a new car for $45,000, inclusive of GST. Registration amounting to $450 was paid before delivery on 1st October 2012.
Write a report to the owners detailing : You are to journalise the events (including dates and notations). You should assume that all monies were received on 18th April (applications). What other option did the directors have with the excess demand, returning the excess?
What additional information would your decision depend : Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the company stock. Whichever one you choose will be awarded today. The stock is currently trading for $63 per share.
Corporate governance disclosures : identify anynotable differences between the corporate governance disclosures that were made in last year'scorporate governance report and those that were made this year.
What is the efficiency of an ideal engine operating : A heat engine takes in 126 kJ of heat from a reservoir at 820 K and exhausts 88 kJ to a reservoir at 292 K. What is the efficiency of an ideal engine operating between the same two reservoirs
How much force is tending to pull rover forward : A woman takes her dog Rover for a walk on a leash. To get the little pooch moving forward, How much force is tending to pull Rover forward

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Determine the current financial condition

Determine the current financial condition of Eastman Kodak based on its most current quarterly report. Based on your evaluation, Show the most significant "red flags" for its public accounting firm to consider.

  Net income for financial statement

Evaluation of owners equity and net income for financial statement -  Show the effect of this entry on current-year net income and the balance in the owners' equity account at year-end

  Accounting for receivablesacme company had a january 1

accounting for receivablesacme company had a january 1 balance in its allowance for doubtful accounts of 7000 for the

  Are these policies expensive

The group of key personnel has an important impact on an organization. Some companies carry director and officers liability insurance. Are these policies expensive? Why are they necessary?

  Question you have just won a free trip to the destination

question you have just won a free trip to the destination of your preference and all airline or other transportation

  What will be the implications for barmunda

What will be the implications for Barmunda Pty Ltd if it is considered to be a reporting entity and advise the Management Committee of Barmunda Pty Ltd as to whether the company would be considered a reporting entity in accordance

  Question 1suppose that wal-mart stores inc has decided to

question 1suppose that wal-mart stores inc. has decided to surface as well as maintain for 10 years a vacant lot next

  Compute predicted quantity demanded of x at these prices

Compute the predicted quantity demanded of X at these prices and income. b. At the values of P, M, PR given above, what are the price, income, and cross price elasticities of demand?

  Economic conditions and industry competition

Describe the background of the company and explain why you decide to choose this company and

  Classification of cost in direct material direct labor

classification of cost in direct material direct labor overheads etc.using the code letters below indicate in the space

  Captins cereal is considering introducing a variation of

captins cereal is considering introducing a variation of its current breakfast cereal crunch stuff. the new cereal will

  Find out or prepare the price-earnings ratio

Find out or prepare the price/earnings ratio, the dividend payout ratio, the dividend yield, book value, and earnings per share, and identify whether you would consider this company a good investment, with regard to your personal investment object..

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