Q: MacKenzie Corporation currently has 10 million shares of stock outstanding at a
MacKenzie Corporation currently has 10 million shares of stock outstanding at a price of $40 per share. The company would like to raise money and has announced rights issue. Every existing shareholder...
See AnswerQ: You have started a company and are in luck—a venture
You have started a company and are in luck—a venture capitalist has offered to invest. You own 100% of the company with 5 million shares. The VC offers $1 million for 800,000 new shares. a. What is th...
See AnswerQ: Starware Software was founded last year to develop software for gaming applications
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 8 million shares of stock. Starware now needs to raise a secon...
See AnswerQ: Elmdale Enterprises is deciding whether to expand its production facilities. Although
Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first tw...
See AnswerQ: Your start-up company needs capital. Right now, you
Your start-up company needs capital. Right now, you own 100% of the firm with 10 million shares. You have received two offers from venture capitalists. The first offers to invest $3 million for 1 mill...
See AnswerQ: Three years ago, you founded your own company. You invested
Three years ago, you founded your own company. You invested $100,000 of your own money and received 5 million shares of Series A preferred stock. Your company has since been through three additional r...
See AnswerQ: Based on the information in Problem 4 (and that each share
Based on the information in Problem 4 (and that each share of all series of preferred stock is convertible into one share of common stock), what fractions of the firm do the Series B, C, and D investo...
See AnswerQ: Assuming that you own only the Series A preferred stock in Problem
Assuming that you own only the Series A preferred stock in Problem 4 (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm d...
See AnswerQ: Roundtree Software is going public using an auction IPO. The firm
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Assuming Roundtree would like to sell 1.8 million shares in its IPO, what will be the winning auction...
See AnswerQ: You own a bond with a face value of $10,
You own a bond with a face value of $10,000 and a conversion ratio of 450. What is the conversion price?
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