# Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work the problems. Cash Equation: Bettendorf Corporation

Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work the problems. Cash Equation: Bettendorf Corporation has a book net worth of \$17,800. The company’s long-term debt is \$6,900. Its net working capital, excluding cash, is \$1,600. Its fixed assets are \$21,300. How much cash does the company have? If the current liabilities are \$2,575, what are the current assets? Rights Offerings: Borkin, Incorporated is proposing a rights offering. Currently, there are 560,000 shares outstanding at \$85 each. There will be 65,000 new shares offered at \$84 each. Calculate each of the following: Using Spot and Forward Exchange Rates: The spot exchange rate for the Canadian dollar is Can \$1.14 and the six-month forward rate is Can \$1.17. Calculate whether a U.S. dollar or a Canadian dollar is worth more. Cross-Rates and Arbitrage: The Japanese yen exchange rate is ¥96=\$1, and the British pound exchange rate is £1=\$1.72. Calculate the cross-rate in terms of yen per pound.