Assume the initial MVBS of ABC Corp. is as follows, and there are currently 100 shares outstanding: A L+E C = 1000 D = 1000 EV = 1500 E = 1500 MVA = 2,500 MVL = 2,500 ABC has an investment opportunity that requires an initial outlay of $2,000 and generates an NPV of $2,000. Assume perfect capital markets where everybody has the same information. The firm will use the cash on hand to partially finance the investment and raise the remaining cash via external capital markets. a) (5 points) Assume the firm raises the remaining amount via additional debt. b) (5 points) Assume the firm raises the remaining amount via a seasoned equity offering. c) (5 points) Assume the firm raises the remaining amount via a rights offering of 100 new shares at $10 per share (assume full subscription). 6 Assume the initial MVBS of ABC Corp. is as follows, and there are currently 100 shares outstanding: A L+E C = 1000 D = 1000 EV = 1500 E = 1500 MVA = 2,500 MVL = 2,500 ABC has an investment opportunity that requires an initial outlay of $2,000 and generates an NPV of $2,000. Assume perfect capital markets where everybody has the same information. The firm will use the cash on hand to partially finance the investment and raise the remaining cash via external capital markets. a) (5 points) Assume the firm raises the remaining amount via additional debt. b) (5 points) Assume the firm raises the remaining amount via a seasoned equity offering. c) (5 points) Assume the firm raises the remaining amount via a rights offering of 100 new shares at $10 per share (assume full subscription). 6