Problem 20-1
(Given Data)
Current assets $300 Debt $400
Fixed assets 500 Equity 400
Total assets $800 Total claims $800
Equipment Costs or Cost to borrow to buy it $100 (Given Data)
Find the Debt Ratio if the company PURCHASES the equipment
Find the Debt Ratio if the company LEASES the equipment
Problem 20-2
Value of the first issued bond = $1,000
Value of second issued bond = (Answer will go in cell B29)
Settlement
Maturity
Rate
YTM
Redemption
Frequency
Basis
Bond Price
Multiply by 10
Problem 20-3
Par Value = $1,000
Conversion Price = $40
Evaluate the conversion Ratio
Problem 20-6a
Price of Stock
Price of Stock = $18 so Exercise Value = $18
Price of Stock = $21 so Exercise Value = $21
Price of Stock = $25 so Exercise Value = $25
Price of Stock = $70 so Exercise Value = $70
Exercise Price = $21
Calculate the Exercise Value
Attachment:- problems.rar