Fundamentals of Corporate Finance Exercise: Equity Finance Liabilities Assets Fixed Assets: Properties: Machinery: Current Assets: Inventory: Operational Claims: Cash & Equivaltens: Balance Sheet total: Balance Sheet in Mio. Equity Capital: 1.400 Share Capital: 600 Capital Reserves: Profit Reserves: 700 Provisions: 250 Long-term Debt: 50 Operational Liabilities: 3.000 Balance Sheet total: 50 550 400 100 1.800 100 3.000 Current stock price = 20 Nominal value of the share = 1 New capital to be raised = 25 million Issue price = 15 Task 1: Calculate the value of subscription right and the new mixed price of shares Fundamentals of Corporate Finance Exercise: Equity Finance An institutional investor of the company holds 1 million shares before the increase in equity capital. He would like to participate in the capital increase, but only use the funds from the sale of his subscription rights. Task 2: Please calculate the total value of his shares and his share of voting rights before and after the capital increase! Fundamentals of Corporate Finance Exercise: Equity Finance Liabilities Assets Fixed Assets: Properties: Machinery: Current Assets: Inventory: Operational Claims: Cash & Equivaltens: Balance Sheet total: Balance Sheet in Mio. Equity Capital: 1.400 Share Capital: 600 Capital Reserves: Profit Reserves: 700 Provisions: 250 Long-term Debt: 50 Operational Liabilities: 3.000 Balance Sheet total: 50 550 400 100 1.800 100 3.000 Current stock price = 20 Nominal value of the share = 1 New capital to be raised = 25 million Issue price = 15 Task 1: Calculate the value of subscription right and the new mixed price of shares Fundamentals of Corporate Finance Exercise: Equity Finance An institutional investor of the company holds 1 million shares before the increase in equity capital. He would like to participate in the capital increase, but only use the funds from the sale of his subscription rights. Task 2: Please calculate the total value of his shares and his share of voting rights before and after the capital increase