Vrije Universiteit Amsterdam Exam Corporate Finance 4.2
Faculty Economicsand 20 December2006,12:00- 14245
BusinessAdministration
Gradeswill be announcedon: V/ednesday17 Janvary2006
Reviewopportunitynext day: Thursday18January2006,16.00
l. This re-examwill take 2 hoursand45 minutes
2. This examconsistsof 14pages(including this front page).Pleasecheck!
Y
3. Write your nameand stude,ntnumberon the top of this page.
4. Answer the questionsin the designatedareabelow the questions.
5. All answersneedto be motivated.
6. Only theuseof a calculatorwithoutcoÍttputern ernory/ is permitted
7. Maximum creditsper exercise,out of a total of 100 (providedunexpectedcircumstances)
Exercise:1234
Credits: 25 25 30 20
v
, ExerciseI
BerendInc is a publiclyJistedcompany.The capitalstructureexistsof 10,000,000sharesand
600,000convertibles. No dividendsor couponsarepaid.Thereis no otherdebtor equrty.
The shareshavea facevalueof€ 10.
The convertibleshave afacevalueof € 1,000each.
The maturitydateof this loan is Jarnary,l 2007.
Bondholderswill havethe right to convertonebondinto 50 sharesBerendInc. until January
1 2007.
Questionla
Graphthe value of the sharesof BerendInc. as a function of the value of the firm at January
ft 2007,the end of the time to maturityof the convertible.
v
Questionlb
Graphthevalueof the convertiblesof BerendInc. as a functionof the valueof the firrn at
January1" 2007,the endof thetime to maturityof the convertible.
ó
Faculty Economicsand 20 December2006,12:00- 14245
BusinessAdministration
Gradeswill be announcedon: V/ednesday17 Janvary2006
Reviewopportunitynext day: Thursday18January2006,16.00
l. This re-examwill take 2 hoursand45 minutes
2. This examconsistsof 14pages(including this front page).Pleasecheck!
Y
3. Write your nameand stude,ntnumberon the top of this page.
4. Answer the questionsin the designatedareabelow the questions.
5. All answersneedto be motivated.
6. Only theuseof a calculatorwithoutcoÍttputern ernory/ is permitted
7. Maximum creditsper exercise,out of a total of 100 (providedunexpectedcircumstances)
Exercise:1234
Credits: 25 25 30 20
v
, ExerciseI
BerendInc is a publiclyJistedcompany.The capitalstructureexistsof 10,000,000sharesand
600,000convertibles. No dividendsor couponsarepaid.Thereis no otherdebtor equrty.
The shareshavea facevalueof€ 10.
The convertibleshave afacevalueof € 1,000each.
The maturitydateof this loan is Jarnary,l 2007.
Bondholderswill havethe right to convertonebondinto 50 sharesBerendInc. until January
1 2007.
Questionla
Graphthe value of the sharesof BerendInc. as a function of the value of the firm at January
ft 2007,the end of the time to maturityof the convertible.
v
Questionlb
Graphthevalueof the convertiblesof BerendInc. as a functionof the valueof the firrn at
January1" 2007,the endof thetime to maturityof the convertible.
ó
