PELLYKW6A4Ch20

PELLYKW6A4Ch20 - Chapter 20 Question 12 Input Area Stock...

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Chapter 20 Problems 6, 12 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 20 Question 6 Input Area: Funds needed $3,500,000 Offer price $31 Spread 8% Administrative expense $900,000 Output Area: Proceeds from sale 4,782,609 Number of shares offered 154,278
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Unformatted text preview: Chapter 20 Question 12 Input Area: Stock price $73 Number of shares 45,000 Total assets $6,500,000 Total liabilities $2,600,000 Net Income $630,000 Cost $1,100,000 $73.000 Output Area: $1.00 #REF! ROE #REF! If the share price after the offering is the same, then the project NPV is #REF! Accounting dilution still takes place, as the BVPS still falls from #REF! to #REF! , but no market value dilution taked place because the firm is investing in a zero NPV project. P/E EPS 1 Net income 1...
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This note was uploaded on 02/12/2012 for the course MBA 551 taught by Professor Smith during the Spring '11 term at Indiana Wesleyan.

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PELLYKW6A4Ch20 - Chapter 20 Question 12 Input Area Stock...

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