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FCF 9th edition Chapter 15

# FCF 9th edition Chapter 15 - Chapter 15 Problems 1-15 Input...

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Chapter 15 Problems 1-15 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" and "Solver Add-In."

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Chapter 15 Question 1 Input Area: Shares outstanding 500,000 Price \$81.00 New shares 60,000 New price \$70.00 Output Area: a. New market value \$44,700,000 b. Number of rights needed 8.33 c. P(x) \$79.82 d. Value of a right \$1.18 e. A rights offering usually costs less, it protects the proportionate interests of existing share- holders, and protects against underpricing.
Chapter 15 Question 2 Input Area: Amount raised \$40,000,000 Stock price \$53 Shares outstanding 4,100,000 Subscription price \$48 Shareholder 1,000 Output Area: a. Maximum subscription price = current share price \$53 Minimum is anything > 0 b. Number of new shares 833,333 Number of rights needed 4.92 c. P(X) \$52.16 Value of a right \$0.84 d. Before offer: \$53,000 After offer: \$53,000

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Chapter 15 Question 3 Input Area: Ex-rights price \$81 Rights-on price \$74.80 Funds needed \$20,000,000 Price \$40 Output Area: N 5.613 Number of new shares 500,000 Number of old shares 2,806,452
Chapter 15 Question 4 Input Area: Undervalued IPO \$7

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