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    Corporate Finance: Value, Exercise Price and Exchange Rate

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    PROBLEM 1:
    Net Worth $16,500
    Long-term Debt $7,800
    Net Working Capital (Excluding Cash) $1,900
    Fixed Assets $20,700
    Current Liabilities $2,750

    Cash =
    Net Working Capital (Including Cash) =
    Current Assets =

    PROBLEM 2:
    # of shares outstanding 450,000
    Current Stock Price $90
    # of new shares outstanding in the future (rights offering) 80,000
    Price of New Stock (or rights) $84

    A. New Market Value of the Company =
    B. # of Rights Needed =
    C. Ex-Rights Price =
    D. Value of the Right =

    PROBLEM 3:
    Spot exchange rate for the Canadian Dollar $1.02
    6 month forward rate $1.03
    U.S. Dollar $1.00

    One Canadian Dollar is worth

    PROBLEM 4:
    British Pound Exchange Rate= 93
    Japanese Yen Exchange Rate= 1

    Cross Rate in terms of Yen per Pound =

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    https://brainmass.com/business/foreign-exchange-rates/corporate-finance-value-exercise-price-exchange-rate-503160

    Solution Preview

    PROBLEM 1:
    Net Worth $16,500
    Long-term Debt $7,800
    Net Working Capital (Excluding Cash) $1,900
    Fixed Assets $20,700
    Current Liabilities $2,750

    Answer:
    Cash = Net Worth + Long-term Debt + Current Liabilities = 16500+7800+2750=27050
    Net Working Capital (Including Cash) = Net Worth + Long-term Debt - Net Working Capital (Excluding Cash) - Fixed ...

    Solution Summary

    Value, exercise price and exchange rates are examined for corporate finance. The current liabilities are determined.

    $2.49

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