A South African Group Needs to Raise $4 Million to Pay

question 4

Essay

A South African group needs to raise $4 million to pay for its diamonds in the near future.It will raise the funds by offering rights of 400,000 each, and which entitles the owner to buy one new share.The company currently has one million shares outstanding priced at $40 each.What must be the subscription price on the rights the company plans to offer?

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Definitions:

Compounds

Substances formed from the chemical combination of two or more elements in a fixed ratio, characterized by specific properties.

Characteristic Stretch

Refers to a specific vibration in a molecule observed in IR spectroscopy, corresponding to the bond or functional group unique to that molecule.

Characteristic Stretch

Specific vibrational movements in molecules observed in infrared spectroscopy that help identify functional groups.

Mass Spectrometer

An analytical instrument used to identify substances within a sample by sorting gaseous ions based on their mass-to-charge ratios.