Copy of FCF 9th edition Chapter 15

Copy of FCF 9th edition Chapter 15 - Chapter 15 Problems...

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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.
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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
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Chapter 15 Question 4 Input Area: Undervalued IPO $7 Overvalued IPO $5 Price $40 # of shares
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Copy of FCF 9th edition Chapter 15 - Chapter 15 Problems...

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