Question

How to calculate tyhe net proceeds after new shares are issued?

Answer 1

Companies often issue additional shares to raise money for their financing needs. For example, real estate investment trusts are known to issue shares to acquire more properties and grow their business. You can find information about a company's recently issued shares in its annual report, and here's how to use that information to calculate the issue price per share.

Calculating issue price per share
First, you'll need to locate the company's information about its recently issued shares. This can be found in the annual report, often in several places, and should include the following information:

■ The number of shares issued.

■ The net proceeds from the issue.

■ The costs related to issuing the shares, such as fees and commissions.

■ Although it's not needed to calculate the issue price, the annual report can usually tell you the month in which the stock was issued, as well as what the proceeds were used for.

Once you have this information, the calculation is pretty straightforward. Start by adding the net proceeds to the costs in order to find the gross (total) proceeds from the stock issuance.

Then, divide the gross proceeds by the number of shares issued to calculate the issue price per share.

hope it helps .
mark as a brainlest.