Zenith Trading Plc has an issued ordinary share capital of \text{₦}1,500,000 made up of sh… — JAMB UTME

Zenith Trading Plc has an issued ordinary share capital of $\text{₦}1,500,000$ made up of shares with a nominal value of $\text{₦}0.50$ each. The directors decide to issue rights to existing shareholders on the basis of $1$ new share for every $3$ shares held at an issue price of $\text{₦}0.80$ per share. If all shareholders fully subscribe to the rights issue, what is the total amount of cash proceeds received by the company?

A
$\text{₦}400,000$
B
$\text{₦}500,000$
$\text{₦}800,000$ Cevap
D
$\text{₦}1,200,000$

Cevap

The total cash proceeds received by the company from the rights issue is

\text{₦}800,000

To find the total cash proceeds raised, first calculate the total number of existing ordinary shares:

\text{₦}1,500,000 / \text{₦}0.50 = 3,000,000

shares. Next, calculate the number of new shares issued based on the 1-for-3 rights ratio:

3,000,000 / 3 = 1,000,000

shares. Finally, multiply the number of new shares by the issue price per share:

1,000,000 \times \text{₦}0.80 = \text{₦}800,000

Adım Adım Çözüm

Calculate the total number of existing issued shares.

\frac{\text{₦}1,500,000}{\text{₦}0.50} = 3,000,000\text{ shares}

Share capital is given as a total monetary value, so dividing by nominal value yields the share quantity.

Determine the number of new rights shares issued.

\frac{3,000,000\text{ shares}}{3} = 1,000,000\text{ new shares}

The rights issue offer ratio is 1 new share for every 3 existing shares held.

Calculate total cash proceeds from the issue.

1,000,000\text{ shares} \times \text{₦}0.80 = \text{₦}800,000

Cash proceeds equal the number of rights shares issued multiplied by the issue price per share.

Anahtar Kavram

Calculation of rights issue proceeds

Soru

Cevap

Adım Adım Çözüm

Anahtar Kavram

Sık Yapılan Hatalar

Konular

Bu konudan daha fazla soru