The following is a summarised balance sheet of Nithsdale Ltd.
|
£000s |
|
|
Cash |
20 |
|
Other assets less liabilities |
320 |
|
340 |
|
|
Ordinary shares (400,000 of 25 pence each) |
100 |
|
Share premium |
40 |
|
Reserves of retained profit |
200 |
|
340 |
The company is considering three possible changes to its capital structure:
(a) issue for cash 50,000 additional ordinary shares at £1 per share, fully paid; or
(b) make a 1 for 4 capitalisation issue of ordinary shares; or
(c) make a 1 for 5 rights issue at £3 per share.
Show separately the impact of each change on the balance sheet of the company.