Apex Plc has an issued share capital of 800,000 ordinary shares of \text{₦}0.50 each. The … — JAMB UTME

Apex Plc has an issued share capital of $800,000$ ordinary shares of $\text{₦}0.50$ each. The company announces a bonus issue of $1$ new ordinary share for every $4$ shares held. Following the completion of the bonus issue, the company makes a rights issue of $1$ new ordinary share for every $5$ existing shares held at an issue price of $\text{₦}1.20$ per share. What is the total value of the company's issued ordinary share capital in Naira ( $\text{₦}$ ) after both the bonus issue and rights issue are fully executed?

Cevap: 600000 ₦

Cevap

The total value of the company's issued ordinary share capital after both the bonus and rights issues is ₦600,000.

To find the post-issue share capital, calculate the nominal value added by each transaction. Initial share capital is 800,000 shares × ₦0.50 = ₦400,000. A 1-for-4 bonus issue adds 200,000 shares (800,000 / 4), increasing nominal share capital by ₦100,000 (200,000 × ₦0.50) and bringing total shares to 1,000,000. A 1-for-5 rights issue on these 1,000,000 shares adds 200,000 shares (1,000,000 / 5). Only the nominal value of ₦0.50 per rights share is added to Share Capital (200,000 × ₦0.50 = ₦100,000), while the ₦0.70 excess per share is credited to Share Premium. Combining ₦400,000 + ₦100,000 + ₦100,000 yields the final issued ordinary share capital of ₦600,000.

Adım Adım Çözüm

Calculate the initial issued ordinary share capital

800,000 \text{ shares} \times \text{₦}0.50 = \text{₦}400,000

Issued share capital is recorded strictly at the nominal (par) value per share.

Determine the number of bonus shares issued and nominal value capitalized

\text{Bonus shares} = \frac{800,000}{4} = 200,000 \text{ shares}; \quad \text{Nominal value} = 200,000 \times \text{₦}0.50 = \text{₦}100,000

A 1-for-4 bonus issue issues 1 new share for every 4 existing shares held, using reserves to fund the nominal value without receiving cash.

Determine the total number of issued shares prior to the rights issue

800,000 + 200,000 = 1,000,000 \text{ shares}

The rights issue occurs after the bonus issue, so the ratio applies to all post-bonus shares.

Determine the number of rights shares issued and nominal value added to share capital

\text{Rights shares} = \frac{1,000,000}{5} = 200,000 \text{ shares}; \quad \text{Nominal capital added} = 200,000 \times \text{₦}0.50 = \text{₦}100,000

Only the nominal value (₦0.50 per share) increases the Issued Share Capital account. The excess issue price (₦1.20 - ₦0.50 = ₦0.70 per share) is credited to the Share Premium account.

Calculate the total final issued ordinary share capital

\text{₦}400,000 + \text{₦}100,000 + \text{₦}100,000 = \text{₦}600,000

Summing the initial capital with the nominal values added by the bonus and rights issues gives the final Share Capital balance.

Anahtar Kavram

Calculation of post-issue nominal share capital following sequential bonus and rights issues

Soru

Cevap

Adım Adım Çözüm

Anahtar Kavram

Sık Yapılan Hatalar

Konular

Bu konudan daha fazla soru