Corporate Finance FIN201

College of Administrative and Financial Sciences

Assignment-1

Deadline: 20/07/2022 @ 23:59

     For Instructor’s Use only

Instructions – PLEASE READ THEM CAREFULLY

• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.

Questions

Q1 (3 points): Assume you are an entrepreneur and would like to access extra fund (i.e. 100 million SAR), how would you get that fund? Explain in detail all the process.

Q2:  (7 points) ABC corporation became publicly traded company on 2020 and issue 10 million shares which has market price on the secondary market of 10 SAR per share.  Assume it can issue up to 10 million shares, 5 million extra shares have been issued on 2021. Then, the corporation repurchase 1 million shares on 2022.

Answer the following:

• (1.5 points) How many outstanding shares on 2020, 2021, 2022?
• (1 points) How many issued shares on 2021, 2022?
• (1 point) Did the company have Seasoned equity during this cycle? If yes how many shares and which year?
• (1 point) How many authorized shares?
• (1 point) How many treasury stocks on 2022?
• (1.5 point) Calculate the cap market for this corporation on 2020?