I am come back:I have some finance problems need help,please download and look at them.

1. The LaPorte Corporation has a new rights offering that allows you to buy one share of stock with 3 rights and $20 per share. The stock is now selling ex-rights for $26. What was the price rights-on (before the announcement of the rights offering)? 2. The Blackberry Co. plans on raising $10 million through a rights offering. The subscription price is set at $16. Currently, the company has 1.6 million shares outstanding with a current market price of $19.50 a share. Each shareholder will receive one right for each share of stock they currently own. How many rights will be needed to purchase one new share of stock in this offering? 3. You currently own 10 percent of the 2 million outstanding shares of the Perry Co.The company has just announced a rights offering with a subscription price of $30. Every shareholder will receive one right for every share of stock they own. This offering will provided $15 million of new financing for the firm, ignoring all issue costs. What will be your new ownership position if you opt to sell your rights rather than exercise them? 4. For a particular stock the old stock price is $20, the ex-rights price is $15, and the number of rights needed to buy a new share is 2. Assuming everything else constant, the subscription price is _____. 5. Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Blackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $36,000 in cash. What is the merger premium per share? 1 6. ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share. XYZ has 2,500 shares outstanding at a price of $28 a share. XYZ is acquiring ABC for $36,000 in cash. The incremental value of the acquisition is $3,000. What is the net present value of acquiring ABC to XYZ? 7. Winslow Co. has agreed to be acquired by Ferrier, Inc. for $25,000 worth of Ferrier stock. Ferrier currently has 1,500 shares of stock outstanding at a price of $21 a share. Winslow has 1,000 shares outstanding at a price of $22. The incremental value of the acquisition is $4,000. What is the merger premium per share? 8. Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 1,800 shares outstanding at a price of $15 a share. The after-merger earnings will be $6,500. What will the earnings per share be after the merger? 9. Firm V was worth $450 and Firm A had a market value of $375. Firm V acquired Firm A for $425 because they thought the combination of the new Firm VA was worth $925. What is the NPV from the merger of Firm V and Firm A? 2 10. Firm A is being acquired by Firm B for $24,000 worth of Firm B stock. The incremental value of the acquisition is $3,500. Firm A has 1,500 shares of stock outstanding at a price of $15 a share. Firm B has 1,200 shares of stock outstanding at a price of $30 a share. What is the value per share of Firm B after the acquisition? 11. What is the cost of five November 25 call option contracts on KNF stock given the following price quotes? KNJ (KNJ) Expiration Aug Nov Aug Nov Underlying stock price: 30.86 Call Put Strike Last Last 25 6.15 .05 25 6.60 .10 35 .10 4.60 35 .70 5.10 12. You sold five 45 call option contracts at a quoted price of $1.25. What is your net profit or loss on this investment if the price of the underlying asset is $47.60 on the option expiration date? 13. You own two put option contracts on Magpie stock with an exercise price of $37.50. What is the total intrinsic value of these contracts if the stock is currently selling for $35.90 a share? 3 14. You own a call option on Beaker Glass stock that expires in one year. The exercise price is $35. The current price of the stock is $38.20 and the risk-free rate of return is 4.7 percent. Assume the option will finish in the money. What is the current value of the call option? 15. Party Town stock is selling for $44 a share. A 6-month call on Party Town stock with a strike price of $45 is priced at $0.40. Risk-free assets are currently returning 0.20 percent per month. What is the price of a 6-month put on Party Town stock with a strike price of $45? 16. What is the value of a 9-month call with a strike price of $50 given the Black-Scholes Option Pricing Model and the following information? Stock Price Exercise Price Time to Expiration Risk-free rate N(d1) N(d2) $47 $50 .75 .04 .46119 .39334 17. Ted's Welding Shop has a pure discount bond with a face value of $5,000 that matures in one year. The risk-free rate of return is 4.5 percent. The assets of the business are expected to be worth either $4,800 or $5,200 in one year. Currently, these assets are worth $4,750. What is the current value of the bond? 4 18. Kurt Neal and Son is considering a project with a discounted payback just equal to the project's life. The projections include a sales price of $11, variable cost per unit of $8.50, and fixed costs of $4,500. The operating cash flow is $6,200. What is the (financial) break-even quantity? 19. The delta of a call option on a firm's assets is .428. The firm is considering a project with a discount rate of 5%. The initial cost for this project is $1,000. If accepted, the project will produce positive cash flows of $6,500 for the next 2 years. If the firm undertakes this project, how much of its value will accrue to the bondholders of the firm? 20. You are looking at a decision tree of a project. At time 2 of the decision tree it shows that if the project is successful, the payoff will be $53,000 with a 2/3 chance of occurrence. There is also the 1/3 chance of a $-24,000 payoff. The cost of getting to tine 2 (which is incurred at time 1, 1 year out from today) is $44,000. The cost of capital is 15%. What is the NPV of the project at time 1? 5