**Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work on the problems.
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**Problem 1. 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?

**Problem 2. 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 $78 each. Calculate each of the following:

The new market value of the company.

The number of rights that are associated with one of the new shares.

The ex-rights price.

The value of a right.

**Problem 3. Using spot and forward exchange rates:** The spot exchange rate for the Canadian dollar (CAD) is 1.14 CAD and the six-month forward rate is 1.17 CAD. Calculate whether a U.S. dollar (USD) or a Canadian dollar is worth more.

**Problem 4. Cross-rates and arbitrage: **The Japanese yen (JPY) exchange rate is 96 JPY = 1 USD, and the British pound (GBP) exchange rate is 1 GBP = 1.72 USD. Calculate the cross-rate in terms of yen per pound.