College of Administrative and Financial Sciences
Assignment 1
Course Name: Corporate Finance
Student’s Name:
Course Code: Fin201
Student’s ID Number:
Semester: 2
CRN:
Academic Year: 1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/5
Level of Marks: High/Middle/Low
Question 1:
What are the major classes of securities issued by firms to raise capital?
Question 2:
What is the expected rate of return to shareholders if the firm has a 30% tax rate, a 6% rate of
interest paid on debt, a 12% WACC, and a 70% debt-asset ratio?
Question 3:
Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to
raise $400,000 to support its expansion plans. A venture capitalist is prepared to provide the cash
in return for a 40% holding in the company. Under the plans for the investment, the VC will hold
10,000 shares in the company and the two entrepreneurs will have combined holdings of 15,000
shares.
a. What is the total after-the-money valuation of the firm?
b. What value is the venture capitalist placing on each share?
Purchase answer to see full
attachment
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.