Question 1 Dube is a transport and logistics company based in Midrand, South Africa. They have...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665760e8b622b_472665760e8ae00e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665760e915436_473665760e90f4cb.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665760e95eb5d_473665760e959ee5.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665760e9cd986_473665760e9c8545.jpg)
Transcribed Image Text:
Question 1 Dube is a transport and logistics company based in Midrand, South Africa. They have declared an ordinary dividend of R120 000. Their profits for the current year are R1.95 per share, and the share sells for R18. The company is also considering offering a rights issue to its shareholders 1 share for every 4 shares held at an issue price of R15. All the shareholders had accepted the offer by the last day of the offer. Their summarised balance sheet prior to the dividend payment is as follows (all figures in ZAR) Equity Debt Tangible assets Inventories Receivables Bank/cash 800 000 200 000 600 000 5 000 275 000 120 000 Required: 1.1. Calculate the number of shares in issue (2) 1.2. Calculate the dividends per share. (2) 1.3. Calculate: the new share price, the EPS and the price-earnings ratio (3) 1.4. If the company proceeds to issue a rights issue, prepare the appropriate journals for the rights issue (3) 1.5 Disclose the rights issue in the Statement of Changes in Equity (5) Question 1 Dube is a transport and logistics company based in Midrand, South Africa. They have declared an ordinary dividend of R120 000. Their profits for the current year are R1.95 per share, and the share sells for R18. The company is also considering offering a rights issue to its shareholders 1 share for every 4 shares held at an issue price of R15. All the shareholders had accepted the offer by the last day of the offer. Their summarised balance sheet prior to the dividend payment is as follows (all figures in ZAR) Equity Debt Tangible assets Inventories Receivables Bank/cash 800 000 200 000 600 000 5 000 275 000 120 000 Required: 1.1. Calculate the number of shares in issue (2) 1.2. Calculate the dividends per share. (2) 1.3. Calculate: the new share price, the EPS and the price-earnings ratio (3) 1.4. If the company proceeds to issue a rights issue, prepare the appropriate journals for the rights issue (3) 1.5 Disclose the rights issue in the Statement of Changes in Equity (5)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
If the distribution of the ground reaction on the pipe per foot of length can be approximated as shown, determine the magnitude of the resultant force due to thisloading. 25 Ib/ft 25 ft w= 25 (1 +...
-
Why is it important to have a detailed monthly cash budget? What financial issues might an organisation face without a cash budget?
-
The periodic inventory records of Synergy Prosthetics indicate the following at July 31: At July 31, Synergy counts two units of inventory on hand. Requirement 1. Compute ending inventory and cost of...
-
Which vertex listed below could be described as a RECEIVER? OV X Y
-
MMS Associates is a telecommunications service provider. The company is currently redesigning its main office to accommodate six newly hired salespeople. Some of the salespeople are expected to work...
-
Identify and describe the four parts of the AICPA Code of Professional Ethics.
-
What time periods are applicable in Rule 101-Independence to (a) financial interests and (b) business relationships?
-
Identify four problems a researcher might find while screening questionnaires and preparing data for analysis. entered through terminals having touch-screen capabilities, or through the use of a...
-
What actions by a member result in automatic suspension or termination of membership?
-
What circumstances may cause substantive changes in the auditor's standard report
-
5.9. What is the relationship between brand loyalty and brand equity? What role do both concepts play in the development of marketing strategies? 5.10. How can marketers use measures of recognition...
-
Tytus Co. entered into the following transactions involving short-term liabilities in 2004 and 2005. Required 1. Determine the maturity date for each of the three notes described. 2. Determine the...
-
LaShonda Blake, an unmarried employee, works 48 hours in the week ended January 12. Her pay rate is $12 per hour, and her wages are subject to no deductions other than FICASocial Security, PICA...
-
Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes): Required 1. Compute times interest earned for Ace Co. 2. Compute times...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App