Ask Question, Ask an Expert


Ask Financial Management Expert


problem1) Describe the importance of financial institutions in promoting economic growth.

problem2) “With the increasing adoption of information Technology, the banking in India has undergone a seachange.” Comment on this statement with particular reference to new Private Sector Banks.

problem3) What are the powers vested with SEBI to promote development of securities market & to protect the interests of investors?

problem4) Do you believe that Non-banking finance companies have played their role as effective financial intermediaries in India? Have they contributed to the economic growth?


Case Study

Pankaj is considering a rights offering to raise funds to finance new projects that requires Rs.4.5 crore. The floatation cost would be 10% of funds raised. Company at present has 20 lakh shares outstanding & the correct market price of its share is Rs.100. The subscription price has been fixed at Rs.50 per share.

I) How many shares must be sold to raise the funds?

II) How many rights are required to buy one new share?

III) What is the value of one right share?

IV) Illustrate the impact on the shareholder’s wealth who holds required rights to buy one new share if:-

a) He exercises his right

b) Sells his right

c) Does not exercise his right

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93206

Have any Question? 

Related Questions in Financial Management

Consider the demand for electricity of a manufacturing

Consider the demand for electricity of a manufacturing sector in the United States. The data are logged, denote the demand of a fixed day of each month, and are in power6.txt. Build a time series model for the series and ...

The largest tax break for most americans is the mortgage

The largest tax break for most Americans is the mortgage interest tax deduction, which allows homeowners to deduct from their taxable income the amount of money they pay in interest to finance their homes. This tax break ...

Suppose the federal reserve raises shortterm interest rates

Suppose the Federal Reserve raises shortterm interest rates, an action that is likely to reduce aggregate output temporarily. Describe the various effects on the profits of commercial banks.

Angela buys a trea sury bond futures agreement for 94000 on

Angela buys a Trea sury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000. Does she win or lose? By how much? If Angela bought the futures contract to hedge, can she lose? Explain.

1-build a financial profile for ooredoocompany one page

1- Build a financial profile for OoredooCompany( one page only). 2- Export the info (income statement and balance sheet for year 2014 ONLY from AUX website ONLY) to Excel and use them for computing the ratios ( I need th ...

For this part of the project consider that the company you

For this part of the project, consider that the company you created has strategically planned a merger with an overseas organization within its first three years of starting. Now, write a business plan for the newly merg ...

1 calculate the cost of each capital component after-tax

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company's WACC? Use data from the provided w ...

The market demand for stuffed rabbits is q 2600 - 20p and

The market demand for stuffed rabbits is Q = 2,600 - 20P, and the government intends to place a $4 per bunny tax on stuffed rabbit purchases. Calculate the deadweight loss of this tax when: a. Supply of stuffed rabbits i ...

Questions dose this pampl seems fine with calculations and

Questions. Dose this P&L Seems Fine with Calculations and number? If we are trying to figure out how many months " Based on Revenue" will it take to cover up a $250K construction project will take to get its cost back Ca ...

How does a hedge fund differ from a traditional mutual

How does a hedge fund differ from a traditional mutual fund? What are the two types of hedge funds and how are their requirements for participation different? What is the difference between a mutual fund and a money mark ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate