UNIT 6: TEXTBOOK PROBLEMS CHAPTER 18: PROBLEM 2

UNIT 6: TEXTBOOK PROBLEMS
CHAPTER 18: PROBLEM 2
Net Worth
Long-term Debt
Net Working Capital (Excluding Cash)
Fixed Assets
Current Liabilities

$13,205
$8,200
$3,205
$17,380
$1,630

Cash =
Net Working Capital (Including Cash) =
Current Assets =
CHAPTER 19: PROBLEM 1 (a through d)
# of shares outstanding
Current Stock Price
# of new shares outstanding in the future (rights offering)
Price of New Stock (or rights)

490,000
$75
80,000
$71

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

rights per new share

CHAPTER 20: PROBLEM 4a
Spot exchange rate for the Canadian Dollar
6 month forward rate
U.S. Dollar

$1.04
$1.06
$1.00

One Canadian Dollar is worth

(If amount is below 1, then the U.S. dollar is worth more and vice versa.)

CHAPTER 20: PROBLEM 5a
British Pound Exchange Rate=
Japanese Yen Exchange Rate=
Cross Rate in terms of Yen per Pound =

89
1

=
=

$1
$1.62