急急急！！2道金融难题请专业人士帮忙解答！ 5
如题，急求帮助！3.)TheMCo.hasannouncedarightsoffer.Thecompanyhasannouncedthatitwilltakefourri...
如题，急求帮助！
3.) The M Co. has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $40. At the close of business the day before the ex-rights day, the company’s stock sells for $75 per share. The next morning you notice that the stock sells for $68 per share and the rights sell for $6 per share.
REQUIRED:
a.) Are the stock and/or the rights correctly priced on the ex-rights day?
b.) Describe a transaction in which you could use these prices to create an immediate profit.
(Page #2)
4.) High electric costs have made Farmer Companies poultry machine economically worthless. Only two machines are available to replace it. The International Poultry Machine model is available only on a lease basis. The lease payments will be $27,000 for five years due at the beginning of each year. This machine will save Farmer $12,000 per year through a reduction in electric costs in every year. As an alternative, Farmer can purchase a more energy-efficient machine from Basic Machine Co. for $150,000. This machine will save $20,000 per year in electric costs. A local bank has offered to finance the machine with a $150,000 loan. The interest rate on the loan will be 10 percent on the remaining balance and will require five annual principal payments of $30,000. Farmer has a target debt-to-asset ratio of 67 percent. Farmer is in the 34 percent tax bracket. After five years, both machines will be worthless. The machines will be depreciated on a straight line basis.
REQUIRED:
a.) Should Farmer lease the IPM machine or purchase the more efficient Basic machine?
b.) Does your answer depend on the form of financing for direct purchase?
c.) How much debt is displaced by the lease?
对的，是一个project，有人知道怎么做么？
麻烦了 展开
3.) The M Co. has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $40. At the close of business the day before the ex-rights day, the company’s stock sells for $75 per share. The next morning you notice that the stock sells for $68 per share and the rights sell for $6 per share.
REQUIRED:
a.) Are the stock and/or the rights correctly priced on the ex-rights day?
b.) Describe a transaction in which you could use these prices to create an immediate profit.
(Page #2)
4.) High electric costs have made Farmer Companies poultry machine economically worthless. Only two machines are available to replace it. The International Poultry Machine model is available only on a lease basis. The lease payments will be $27,000 for five years due at the beginning of each year. This machine will save Farmer $12,000 per year through a reduction in electric costs in every year. As an alternative, Farmer can purchase a more energy-efficient machine from Basic Machine Co. for $150,000. This machine will save $20,000 per year in electric costs. A local bank has offered to finance the machine with a $150,000 loan. The interest rate on the loan will be 10 percent on the remaining balance and will require five annual principal payments of $30,000. Farmer has a target debt-to-asset ratio of 67 percent. Farmer is in the 34 percent tax bracket. After five years, both machines will be worthless. The machines will be depreciated on a straight line basis.
REQUIRED:
a.) Should Farmer lease the IPM machine or purchase the more efficient Basic machine?
b.) Does your answer depend on the form of financing for direct purchase?
c.) How much debt is displaced by the lease?
对的，是一个project，有人知道怎么做么？
麻烦了 展开
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