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Borkin, Incorporated is proposing a rights offering. Currently, there are 560,000 shares outstanding at $85 each. There will be 65,000 new shares offered at $84 each. Calculate each of the followin
How many more shares can be issued without the approval of shareholders? Suppose that Alfred Cake issues 10,000 shares at $2 a share. Which of the above figures would be changed?
Bettendorf Corporation has a book net worth of $17,800. The company's long-term debt is $6,900. Its net working capital, excluding cash, is $1,600. Its fixed assets are $21,300. How much cash does
Rights Offerings: Borkin, Incorporated is proposing a rights offering. Currently, there are 560,000 shares outstanding at $85 each. There will be 65,000 new shares offered at $84 each. Calculate eac
The resale was complete before the London Stock Exchange opened the next morning. Goldman Sachs made $15 million overnight.40 What does this deal say about market efficiency? Discuss.
The Modern Language Division earned $1.6 million on net assets of $20 million. The cost of capital is 11.5 percent. Calculate the net percentage return on investment and EVA.
Complete the following problems based on the Megaware case study below. Where appropriate, show or explain your work. You may use Excel to work the problems.
How does this affect the value of existing one- and two-year-old plants? Existing plants must continue using the original tax depreciation schedule.
Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work the problems. Note that the table f
Photographic laboratories recover and recycle the silver used in photographic film. What is the NPV of the new equipment? Make additional assumptions as necessary.
Write down a 2-page paper in which you assess the debt market for interest rate and credit risk transfer vehicles. You are required to use at least two journal articles and follow proper APA format.
What are the four major types of loans made by U.S. commercial banks? What are the basic distinguishing characteristics of each type of loan?
What is meant by daily earnings at risk (DEAR)? What are the three measurable components? What is the price volatility component?
What is the NPV of the BG project? Assume the real cost of capital is 9 percent. To keep things simple, also make the following assumptions.
Write down an analysis of the current status of government securities.
Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of $17
What is the internal rate of return for the following project: An initial outlay of $11,000 resulting in a single cash inflow of $21,989 in 9 years.
What is the price of 1 million ounces of gold produced in eight years? Assume that gold prices have a beta of 0 and that the risk-free rate is 5.5 percent.
How does the presence of a secondary market simplify your problem in principle? Do you think these simplifications could be realized in practice? Explain.
If copper has a beta of 1.2, what is the expected price of copper at the end of the year? What is the certainty-equivalent price?
These cash returns are expected to remain constant in real terms. How much is the land worth? Alocal banker has advised you to use a 12 percent discount rate.
Suppose that the plant can be sold for $90 million to another automaker if the line is not successful. Now would you build the plant?
For example, can you think of some industries in which this technique would be particularly attractive? Would it be more useful for large-scale investments than small ones? Discuss.
What is the NPV of the electric scooter project under the following scenario?