PPT Slide

New values (after financing but

anticipated upon announcement):

S1 = = $1,618.

V1 = $1,618 + $500 = $2,118.

$250 of value belongs to existing bondholders, so

P1 = = = $21.22.

[$500 - 0.11($500)](0.6)

0.165

$2,118 - $250

88.03

V1 - D0

n0

Previous slide

Next slide

Back to first slide

View graphic version