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hii please help me to solve the questions below.. I'm stuck.. MNC Corporation will issue 80 million units of new common stock through rights offering
hii please help me to solve the questions below.. I'm stuck.. MNC Corporation will issue 80 million units of new common stock through rights offering at the price of RM5.30 per share. The additional funds earned will be used to finance project in Johor. The company currently has 100 million shares outstanding selling at RM13.50 per share. Below is the total equity account of the company: RM'000 Common Share100,000 Premium35,000 Retain Earning27,300 Preferred Share50,000 Total Net Worth212,300 Determine: a) Total amount of additional capital needed by the company(2 marks) b) Number of right needed to buy 2 lots of new shares.(2 marks) c) The ex-right price of the firm's share.(2 marks) d) Show the changes in equity account after the right offering.(6 marks) e) Instead of issuing the right, the company decides to issue: I. 20 percent stock dividend II. 1 for 2 stock splits f) Show the changes in equity account for two different cases above and determine numbers of share outstanding for each case
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