Corporate B onds/Preffered Stocks, Basic Statistics

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If an exact answer isn''t possible, I really just need a guide.

The company we are using is GameStop Corp, listed as GME on the NYSE.
Using the supplied information and referring to the corporate website or
other sources as necessary, complete a research paper answering all of the
questions below.

In 2008 GameStop Corp did not have an issue of preferred stock.

In 2008 GameStop Corp called their bonds Senior Notes.

In 2009 GameStop Corp operated over 6,000 locations.

In 2010 GameStop Corp wanted to open another 600 locations. How did they
do?

GameStop Corp is in the position of having to determine how to capitalize
their new locations.



The 2009 GameStop Corp Annual Report is available at

https://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDY5ODh8Q
2hpbGRJRD0tMXxUeXBlPTM=&t=1


Use the data from the 2009 GameStop Corp Annual Report to analyze how the
different methods available in capitalizing would affect the company.



Complete or answer the following questions.

1. If GameStop Corp chose to issue another round of corporate bonds, how
much interest rate should they offer?



2. Assume that GameStop Corp did issue corporate bonds at your determined
bond interest rate. Also assume they used bonds for 30% of their 2009
capitalization. By issuing 30% of their 2009 capitalization in bonds, what
difference would result in the earnings per share of common stock?

Illustrate using Excel.



3. Would you recommend changing a percentage of their unsecured borrowing
to issuing bonds?



4. Would you recommend adding an issue of preferred stock to their
financing? If you do, how many shares should they sell, and what should be
the selling price? Illustrate using Excel.

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