FINC400 full course (American Public university)

name-finc400-6.xlsx

Instructions

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FINC 400 Principles of Financial Management

Week 6 Homework Problems

Complete the following problems:

Problem 15-5

Problem 15-10

Problem 15-14

Master 11/2011-kT

Problem 15-5 - Refer to problems at the end of the chapter for details and instructions:
Use the template to complete the problem :
Jordan Broadcasting Company		Solution:
Shares Outstanding	8,000,000	a)	Earnings per share before stock issue			=
Earnings	$24,000,000
New Stock Issue	3,000,000		Earnings per share after stock issue			=
Price of new shares	$40
P/E	23	b)		Earnings per Share		=
					P/E	=
					Stock Price	=
		c)

Problem 15-10 - Refer to problems at the end of the chapter for details and instructions:
Use the template to complete the problem :
The Wrigley Corporation
Offer	Size of Offer	Public Price	Net to Corp.
a	2.00	$15.70	$15.00
b	0.3	$1,001	$992.00
Solution:
a)		Spread =
	% underwriting spread =
b)		Spread =
	% underwriting spread =
c)

Problem 15-14 - Refer to problems at the end of the chapter for details and instructions:
Use the template to complete the problem :
Winston Sporting Goods		Solution:
Retail Price per Share	$18	a)	Spread ($) =
# of shares	600,000		Spread (%) =
Company Proceeds	$16.50		Total Value =
Registration Fees	$150,000
Amount Needed (b)	$18,000,000	Out-of-pocket / Total Value =
			Spread (%) =
			Out-of-pocket =
			Total (%) =
		b)	Amount needed =
			Required Shares to Sell =