Capital raising – NBC Institute

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

Question

Mbo Ltd needs to raise GH¢500,000 to finance a large-scale project which would produce earnings of GH¢90,000 in perpetuity but is undecided as to the manner in which the money should be raised.

The company has an issued capital of 2 million equity shares of GH¢1 each with a current market price of GH¢1.38 cum div. The annual dividend (which has been constant for many years) of GH¢360,000 is about to be paid.

Two methods of raising capital are being considered, a public issue, and a right issue at GH¢1.

Required:
i) Calculate the price at which the public issue should be made. (5 marks)
ii) Calculate the price at which you would expect shares to be valued immediately after the rights issue. (5 marks)

Answer

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Tags: Capital raising, Financial management, Public Issue, Rights Issue, Share Price
Level: Level 3

Topic: Sources of finance and cost of capital
Series: MAY 2018

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

Question

State THREE (3) options that a company limited by shares has in raising capital to finance its operational activities. (6 marks)

Answer

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Tags: Capital raising, Company Law, Corporate finance, Debt Financing, Equity
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2018

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

Question

Many small firms encounter a lot of problems in obtaining funds from the entire financial market to run their businesses. This problem has always accounted for their low performance in business.

Required:
What problems do small firms encounter in their efforts to raise capital in the Ghanaian financial markets? (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital raising, Financial Markets, Small firms
Level: Level 2

Topic: Sources of finance: debt
Series: NOV 2017

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

Question

Mbo Ltd needs to raise GH¢500,000 to finance a large-scale project which would produce earnings of GH¢90,000 in perpetuity but is undecided as to the manner in which the money should be raised.

Two methods of raising capital are being considered, a public issue, and a right issue at GH¢1.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital raising, Financial management, Public Issue, Rights Issue, Share Price
Level: Level 3

Topic: Sources of finance and cost of capital
Series: MAY 2018

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

Question

State THREE (3) options that a company limited by shares has in raising capital to finance its operational activities. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital raising, Company Law, Corporate finance, Debt Financing, Equity
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2018

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

Question

Many small firms encounter a lot of problems in obtaining funds from the entire financial market to run their businesses. This problem has always accounted for their low performance in business.

Required:
What problems do small firms encounter in their efforts to raise capital in the Ghanaian financial markets? (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital raising, Financial Markets, Small firms
Level: Level 2

Topic: Sources of finance: debt
Series: NOV 2017

Question Tag: Capital raising

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AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

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AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

You're reporting an error for "AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital"

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

You're reporting an error for "BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies"

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

You're reporting an error for "FM – Nov 2017 – L2 – Q2b – Sources of finance: debt"

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

You're reporting an error for "AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital"

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

You're reporting an error for "BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies"

FM – Nov 2017 – L2 – Q2b – Sources of finance: debt

Discuss the problems small firms encounter in raising capital in the Ghanaian financial markets.

You're reporting an error for "FM – Nov 2017 – L2 – Q2b – Sources of finance: debt"

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