An Accelerated Rights Issue Has Two Parts, an Accelerated Issue

question 9

True/False

An accelerated rights issue has two parts, an accelerated issue to retail investors and a non-accelerated offer to institutional investors.

---

Definitions:

Net Income

The amount of earnings left after all expenses, taxes, and costs have been subtracted from total revenue.

FMV

Fair Market Value, an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Tax Depreciation

The deduction of a portion of the cost of a business asset from taxable income over the asset's useful life, as allowed by tax laws.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government, after all deductions and exemptions.