Principle of Corporate Finance 英文第十版习题解答Chap015.docVIP

Chapter 15 - How Corporations Issue Securities PAGE  15- PAGE 7 CHAPTER 15 How Corporations Issue Securities Answers to Problem Sets 1. a. Further sale of an already publicly traded stock b. U.S. bond issue by foreign corporation c. Bond issue by industrial company d. Bond issue by large industrial company. ? 2. a. B b. A c. D d. C ? 3. a. Financing of start-up companies. b. Underwriters gather non-binding indications of demand for a new issue. c. The difference between the price at which the underwriter buys the security from the company and re-sells it to investors. d. Description of a security offering filed with the SEC. e. Winning bidders for a new issue tend to  overpay. ? 4. a. A large issue b. A bond issue c. Subsequent issue of stock d. A small private placement of bonds. ? 5. a. False b. False c. True ? 6. a. Net proceeds of public issue = 10,000,000 - 150,000 - 80,000 = $9,770,000; net proceeds of private placement = $9,970,000. b. PV of extra interest on private placement = i.e., extra cost of higher interest on private placement more than outweighs saving in issue costs. N.b. We ignore taxes. Private placement debt can be custom-tailored and the terms more easily renegotiated. ? 7. a. Number of new shares, 50,000 b. Amount of new investment, $500,000 c. Total value of company after issue, $4,500,000 d. Total number of shares after issue, 150,000 e. Stock price after issue, $4,500,000/150,000 = $30 f. The opportunity to buy one share is worth $20. 8. a. Zero-stage financing represents the savings and personal loans the company’s principals raise to start a firm. First-stage and second-stage financing comes from funds provided by others (often venture capitalists) to supplement the founders’ investment. b. Carried interest is the name for the investment profits paid to a private equity or ventur