Schraeder Corporation has 20,000 shares outstanding at $30 each. The firm expects to raise $200,000 via a rights offering at a subscription price of $25. How many rights are required for each new share?

Answers

Answer 1

Answer:

3 right/shares

Explanation:

Price per unit of shares issued under “Rights issue”  = Total proceeds from rights issue/ Subscription price of share issued under rights issue  = 200,000  / $25  = 8,000

Number of new shares = 8,000

Original number of shares = 20,000

Thee number of rights required for each new share  = Original number of shares / Number of new shares  = 20,000 / 8,000 =  2.5 = 3 right/shares (approx)


Related Questions

Other Questions
Which of the following words means the opposite of increasing something?detractnoblyconceiveconsecrate There are 8 girls and 5 boys on the math team. Which ratio correctly describes the relationship between boys and girls on the math team? Wells College in Aurora, New York was previously an all-girls college. In 2005, the college began to allow boys to enroll. By 2012, the ratio of boys to girls was 3 to 7. If there were 200 more girls than boys in2012, how many boys were enrolled that year? What invention of the Wright Brothers is most famous? Who first found a practical use for it which of these are correctly formatted python lists? check all that applyOptions-list1=(race, cars, trucks, bikes)-list2=["computer science', 'math', 'psychology']-list3=('summer', 'winter', 'spring')-list5[52, 24, 71, 56] 4.048 divided by 0.88 The ratio of green apples to red apples at a grocery store is 2 to 3. There are 78 red apples at the grocery store. What is the total number of apples at the store? Budding is a form of A. gestation. B. fertilization. C. asexual reproduction. D. sexual reproduction. What are the top 10 things women like about men? labtable b:eyedrop of blue water in cold watertable c:eyedrop of red water in hot watertable d:see how temperature changes on white + black paper with light shining on themplz helpbrainliest for 1st correct answer What would most likely happen in the ecosystem shown in the above food web if the fox population significantly increased? A. The population of bees would increase. B. The population of mice would decrease. C. The population of black bears would increase. D. The population of mice would increase. Pls help;)))))))))))))))( which religion motive helped unite european christian in fighting the first crusade Carter's football team played 10 games this season. They won only 20% of their games. How many games did Carter's team lose?Your answer: In a scientific experiment, what is the purpose of a procedure? Adriana needs to send 232 invitations to her family and friends for her party. There are 12 invitations in a box. How many boxes will Adriana need to order so that everyone receives an invitation? what is the answer of 12 Which selection best provides evidence to support the central idea that taking a road trip can be a rewarding and inexpensive vacation? If you have a car, time off from work or school and some money for gas and lodging, you can have the vacation of a lifetime by taking a road trip on America's highways. You can dnive to almost all of the most famous tounst attractions in the country, and many. from New York's Times Square to the Golden Gate Bridge in San Francisco care completely free to appreciate. In addition, every city, county, and state has unique sights and hidden treasures ready to be discovered Even better, you can visit one of America's national parks, which offer inexpensive and convenient access to some of the world's most spectacular scenery Every state has at least one national park with features as diverse as mountains, hot springs, ocean shores, and historical sites. With opportunities for hiking, camping, boating, and even scuba diving, a national park visit should be an essential part of your road trip vacation A. You can drive to almost all of the most famous tourist attractions in the country, and many from New Yorks (imes Square to the Golden Gate Bridge in San Francisco, are completely free to B. Every state has at least one national park with features as diverse -as mountans, hot springs, ocean shores, and historical sites. Given right triangle GYK, what is the value of tan(G)?One-halfStartFraction StartRoot 3 EndRoot Over 2 EndFractionStartFraction 2 StartRoot 3 EndRoot Over 3 EndFractionStartRoot 3 EndRoot A) -60B) -30C) -10D) 10