我在国外读书.. 主修finance.. 英文的课程和题目弄得我晕死了 ....  我快要考试了, ,  哪位可以教教我阿 ??

谢谢你们阿 ~

Q1 (sources of financing) (assume annual interest payment)

You need to choose between making a public offering and arranging a private placement. In each case the issue involves $10 million face value of 10-year debt. You have the following data for each:

l         A public issue: the interest rate on the debt would be 8.5%, and the debt would be issue at face value. The underwriting spread would be 1.5%. and other expenses would be $80000.

l         a private placement: the interest rate on the private placement would be 9%, but the total issuing expenses would be only $30000.

Question:

1, what is the difference in the proceeds to the company net of expenses?

2, which is the better deal based on cost ?

Q2 (mergers and takeovers)

Everlife Ltd is considering acquiring Innova Ltd as Everlife believes Innova will be able to utilize its in-house expertise in genetic engineering. Under new management, Innova is expected to increase its growth rate from 6% per year to 8%per year. 

Everlife’s share price is $90 with outstanding shares of 1 million. Innova’s share price is $20 with outstanding shares of 600000. the last paid dividend is $0.80 per share

Question :

1, what’s the gain from the acquisition?

2, what is the cost of the acquisition if Everlife pays $25 in each for each share of Innova?

3, what’s the cost of the acquisition if Everlife offers one share of Everlife foe evert three shares of Innova?

Q3 (international financial management)

The table below shows the annual interest rate (annually compounded) and exchange rate against the dollar for different currencies.

                           Interest rate (%)   spot exchange rate     1-year forward exchange rate

The U.S. (dollar)            3                            -                                  -

Costaguana (pulga)         23                    10000                           11942

Gloccamorra (pint)          8                      17.1                              18.2

Are there any arbitrage opportunities?

If so, how would you secure a positive cash flow today, while zeroing out all future cash flow?