答案和详解如下： 1．Jones Inc. has a capital structure consisting of $8 million of liabilities and $10 million of equity. Included in liabilities is $1.2 million worth of exchangeable bonds. Immediately afterwards, Jones issues $0.7 million of redeemable preferred shares for cash proceeds and also calls its entire group of exchangeable bonds, netting a gain of $0.3 million on the bonds.
Which of the following amounts is Jones’ revised debt to total capital ratio upon completion of the two new transactions? A) 0.421. B) 0.458. C) 0.728. D) 0.845. The correct answer was A) The $0.7 million of redeemable preferred shares are treated as debt and will increase liabilities.
The exchange of the bonds results in a decrease in liabilities of $1.2 million and a gain of $0.3 million. The latter results in an increase in equity by $0.3 million (the net effect of the two transactions also decreases assets by $0.9 million).
Liabilities = $8 million + $0.7 million - $1.2 million = $7.5 million
Equity = $10 million + $0.3 million = $10.3 million
Debt to total capital ratio = Liabilities / (Liabilities + Equity) = $7.5 million / ($7.5 million + $10.3 million) = 0.421.
2．Olszaniecki Inc. issued $80 million of bonds convertible into regular common shares at a price of $56 per share. Current price is $75 per share. Immediately prior to any transactions, Olszaniecki’s total debt is $205 million and total equity is $400 million. It is expected that half of the bonds will be converted this year and the remaining half will be converted next year.
All other things being equal, which of the following amounts represents Olzaniecki’s debt to total capital ratio after all of the bonds have been converted? A) 0.260. B) 0.207. C) 0.273. D) 0.375. The correct answer was B) Debt after conversion = $205 million - $80 million = $125 million
Equity = $400 million + $80 million = $480 million
Debt to Total Capital = Debt / (Debt + Equity) = $125 million / ($125 million + $480 million) = 0.207
3．Cameron Inc. has $10 million of bonds outstanding that are convertible into common shares. The current price per share is $44 and the stated conversion price is $49 per share. Cameron also has exchangeable bonds issued for $20 million that are to be exchanged for shares of Adam Inc. worth $20 million (therefore no gain or loss is realized on the exchange). Based solely on the facts provided above, what effect should the convertible bonds and exchangeable bonds have on an analyst’s assessment of Cameron’s fundamental debt to total capital ratio?
| Convertible Bonds | Exchangeable Bonds |
A) Increase
Decrease B) Decrease No effect C) No effect No effect D) No effect Decrease The correct answer was D) As the conversion price is above the current share price by a reasonable margin (5/44 = 11%), it is unlikely that the bonds will be converted. Thus, there will be no effect on the debt to total capital ratio.
The exchangeable bond transaction has no gain or loss so there is no effect on equity. But the liabilities will be reduced by $20 million and so this will decrease the debt to total capital ratio. | 
发表于 2008-4-18 17:53
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