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Fast Rail Bhd. is a public company engaged in public transportation railway project. Due to the new MRT project, the company plans to raise
Fast Rail Bhd. is a public company engaged in public transportation railway project. Due to the new MRT project, the company plans to raise additional financing with the issuance of RM50 million to assist in the completion the MRT project. The company sets the coupon rate at 8 percent and a conversion price is at 25 percent premium from its current share price. The company share is currently trading at RM25. The company current operating revenue before interest and tax is at RM32 million. The company expects the operating profit will boost to RM55 million after the financing took place. The current tax rate is 30 percent and earning per share (EPS) are recorded at RM0.50 per share. Based on the information given above, calculate the following for Fast Rail Bhd.
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Answer 1 Calculate the number of additional shares to be issued Amount of Financing to be Raised RM50 million Coupon Rate 8 Conversion Price 25 premiu...Get Instant Access to Expert-Tailored Solutions
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