C03
Chapter 3 Spreadsheet Problem Solutions (C03)
INPUT DATA: KEY OUTPUT:
Amount needed by the firm: $170,000 Issue amount ($): $200,000
Flotation costs (in decimal form): 10.00% # of shares: 8,000
2. There are a number of instructions with which you should be familiar to use these
computerized models. These instructions appear in a separate worksheet labeled
INSTRUCTIONS. If you have not already done so, you should read these instructions
now. To read these instructions, click on the worksheet labeled INSTRUCTIONS.
Investment Banking Problem
1. A graph that shows selected ratios for Cary vs. the industry average will be displayed
Page 1
$150,000
$200,000
$250,000
Issue costs
We have already entered the base case data for each model in this
file, and the models have performed the analysis for preceding parts
1. The input data are entered in specified cells in the INPUT DATA
section. When you change an input item, the model automatically
2. The key output data are displayed to the right of the INPUT DATA
3. Input data items which you may change are distinguished from the
ones you should not change. On a color monitor the items which you
may change generally appear blue, with the words and numbers in
the other cells being black.
4. All percentages must be entered as decimals. Dollars and other
numbers must be entered without dollar signs or commas.
5. Instructions and comments concerning specific models accompany
GENERAL INSTRUCTIONS FOR COMPUTERIZED PROBLEM SOLUTIONS