Which of the following would you expect to be the responsibility of financial management?

Drumlin Co has $5m of $0·50 nominal value ordinary shares in issue. It recently announced a 1 for 4 rights issue at $6 per share. Its share price on the announcement of the rights issue was $8 per share.What is the theoretical value of a right per existing share?

Which of the following government actions would lead to an increase in aggregate demand?(1) Increasing taxation and keeping government expenditure the same(2) Decreasing taxation and increasing government expenditure(3) Decreasing money supply(4) Decreasing interest rates

Lane Co has in issue 3% convertible loan notes which are redeemable in five years’ time at their nominal value of $100 per loan note. Alternatively, each loan note can be converted in five years’ time into 25 Lane Co ordinary shares.The current share price of Lane Co is $3·60 per share and future share price growth is expected to be 5% per year.The before-tax cost of debt of these loan notes is 10% and corporation tax is 30%. What is the current market value of a Lane Co convertible loan note?