See attachment for scenario.

1) 1a. The total value of the firm at the IPO is __Million. The price will be $__ per share.

1b. What % of the firm will you own after the IPO?

2) (Secure/Unsecure) bond gives the bondholder the right over particular assets that serve as collateral in case of default. (Secure/Unsecure) corporate bond doesn't offer protection to the bondholder. Thus, with (Secure/Unsecure) corporate bond the bondholders are residual claimants in the case of bankruptcy.

3)The present value of the residual value is $_? The residual value must be $_?

4) See attachment for 4a,b,c.

5) The accounts receivable turnover is approximately _ times per year. The average collection period is _days. (see attach for scenario).

Options: Secure or Unsecure