Find the debt ratio if the company purchases the equipment

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Reference no: EM131939087

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

Verified Expert

The assignment relates to financial management. the concept of foreign exchange rates, the hedging strategies etc has been used while solving the assignment. The formulas for the bod price, exercise price and the value of the option have been provided with the links.

Reference no: EM131939087

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