Aufgabe Vorschlag C - Aufgabe 2 · Abitur Hessen Wirtschaftslehre LK · bilingual Englisch 2022

2.1 Name and describe three advantages and disadvantages for equity and debt financing.

Lösung: Equity financing: - Advantages: capital available for an unlimited period of time; no obligation to pay fixed interest or repay principal; strengthens company stability and independence; improves credit rating. - Disadvantages: dilution of ownership/control rights for existing owners; profit sharing with new shareholders. Debt financing: - Advantages: no sharing of voting/management rights or profits; interest is tax-deductible. - Disadvantages: capital available for a limited time only; fixed interest and redemption burden regardless of financial situation; increases debt ratio and insolvency risk.

2.2 Calculate the subscription ratio.

Lösung: 5:1

2.2 Calculate the value of the subscription right.

Lösung: 5 USD

2.2 Calculate the average share price after the capital increase.

Lösung: 145 USD

2.2 Calculate the capital inflow.

Lösung: 24,000,000 USD / 24000000 USD

2.2 Explain the lower price of the average share price after the capital increase briefly.

Lösung: Due to the issuance of new shares at an issue price below the market price ($120 < 150$), the total value of the company is distributed across a greater total number of shares, resulting in a lower weighted average price (Mischkurs).

2.3 An old shareholder owns 1,800 old shares. Calculate the potential loss of value of the shareholder if he does not get any compensation.

Lösung: 9,000 USD / 9000 USD

2.4 Develop two scenarios the shareholder can choose from in order to avoid a dilution of the value of his share capital. Explain one advantage of each of the two possibilities.

Lösung: Scenario 1: Exercise subscription rights and purchase 360 new shares at USD 120 each. Advantage: maintains share of voting rights and company control. Scenario 2: Sell the 1,800 subscription rights on the stock exchange at USD 5 each (yielding USD 9,000). Advantage: compensates for the financial loss in share value without needing to invest additional funds.

2.5 Calculate how much financial means/money the old shareholder must raise for his investment of 500 new shares.

Lösung: 63,500 USD / 63500 USD

2.6 Assess the impact a capital increase or an additional loan would have had on the rating of the credit worthiness of AirBike Inc.

Lösung: Capital increase: improves the equity-to-debt ratio, strengthens the equity base, lowers insolvency risk, and thus leads to an upgraded credit rating. Additional loan: increases debt burden, interest and repayment commitments, worsens financial leverage and debt ratio, and tends to downgrade credit rating.