Question
Equity: 120,000 shares at $1 each. Share premium: $22,000 The company decides to issue 1:3 shares. Nominal value is $1 and price is $2.5. How
Share premium: $22,000
The company decides to issue 1:3 shares. Nominal value is $1 and price is $2.5.
How many shares does the company issue? How much does the share premium increase? Does equity increase?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Heres the breakdown of the companys share issuance and how it affects equity Shares Issued The compa...
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
