Chapter13 - Excel

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					Corporate Finance Spreadsheet Templates
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Problem 13-1 Problem 13-7 Problem 13-8

Fundamentals of Corporate Finance by Brealey, Myers, and Marcus -- Fourth Edition Copyright © 2004 Irwin/McGraw-Hill and KMT Software, Inc. (www.kmt.com)

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Fundamentals of Corporate Finance
Brealey, Myers, and Marcus 4th Edition
Problem 13-1 Objective Analyze equity Student Name: Course Name: Student ID: Course Number: The authorized share capital of the Alfred Cake Company is 100,000 shares. The equity is currently shown in the company's books as follows: Capital stock ($1.00 par value) Additional paid-in capital Retained earnings Common equity Treasury stock (2,000 shares) Not common equity a. How many shares are issued? b. How many are outstanding? c. How many more shares can be issued without approval of the shareholders? $60,000 10,000 30,000 $100,000 5,000 $95,000

Solution
Problem 13-1 Instructions Enter formulas to calculate the requirements of this problem. a. How many shares are issued? Shares FORMULA b. How many are outstanding? Outstanding shares FORMULA c. How many more shares can be issued without approval of the shareholders? More shares 100,000

File: 5a474d40-e201-4a00-a911-aa4ac0d249c4.xls

Copyright © 2004 Irwin/McGraw-Hill

Printed: 6/11/2009

Fundamentals of Corporate Finance
Brealey, Myers, and Marcus 4th Edition
Problem 13-7 Objective Determine the number of votes a shareholder is entitled to under two assumptions Student Name: Course Name: Student ID: Course Number: The shareholders of the Pickwick Paper Company need to elect five directors. There are 400,000 shares outstanding. How many shares do you need to own to ensure that you can elect at least one director of the company has a. majority voting b. cumulative voting

Solution
Problem 13-7 Instructions Enter formulas to calculate the number of shares needed under the two scenarios. a. majority voting Shares needed FORMULA

b. cumulative voting Shares needed FORMULA

File: 5a474d40-e201-4a00-a911-aa4ac0d249c4.xls

Copyright © 2004 Irwin/McGraw-Hill

Printed: 6/11/2009

Fundamentals of Corporate Finance
Brealey, Myers, and Marcus 4th Edition
Problem 13-8 Objective Calculate the effects of equity transactions Student Name: Course Name: Student ID: Course Number: a. Suppose that Heinz issues 10 million shares at $40 a share. Rework Table 13.2 to show the company's equity after the issue. b. Suppose that Heinz subsequently repurchase 500,000 shares at $50 a share. Rework Table 13.2 to show the effect of the further change.

Solution
Problem 13-8 Instructions Examine the data from table 13.2 and complete the requirements of this problem. Table 13.2 (millions) Common shares ($.25 par value per share) Additional paid in capital Retained earnings Treasury shares at cost Net common equity $108 278 3,853 (2,435) $1,804

a. Suppose that Heinz issues 10 million shares at $40 a share. Rework Table 13.2 to show the company's equity after the issue. Common shares ($.25 par value per share) Additional paid in capital Retained earnings Treasury shares at cost Net common equity FORMULA FORMULA $3,853.00 ($2,435.00) $1,418.00

b. Suppose that Heinz subsequently repurchase 500,000 shares at $50 a share. Rework Table 13.2 to show the effect of the further change. Common shares ($.25 par value per share) Additional paid in capital Retained earnings Treasury shares at cost Net common equity

$3,853.00 FORMULA $3,853.00

File: 5a474d40-e201-4a00-a911-aa4ac0d249c4.xls

Copyright © 2004 Irwin/McGraw-Hill

Printed: 6/11/2009


				
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