sample_excel_sol_chapter_15

sample_excel_sol_chapter_15 - Chapter 15 Problems 1-30...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 15 Problems 1-30 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
k"
Background image of page 2
Chapter 15 Question 1 Input Area: Market value $150,000 EBIT $14,000 Debt issue $60,000 Interest rate 5% Shares outstanding 2,500 Expansion-EBIT 30% Recession-EBIT 60% Output Area: No debt EBIT $5,600 $14,000 $18,200 Interest $- $- $- NI $5,600 $14,000 $18,200 EPS $2.24 $5.60 $7.28 Change EPS% -60.00% 0.00% 30.00% With debt Share price = $60.00 Shares repurchased = 1,000.00 EBIT $5,600 $14,000 $18,200 Interest $3,000 ### $3,000 ### $3,000 NI $2,600 $11,000 $15,200 EPS $1.73 $7.33 $10.13 Change EPS% -76.36% 0.00% 38.18%
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Chapter 15 Question 3 Input Area: No debt TE = MV = $150,000 With debt TE = $90,000 Output Area: a. ROE 3.73% 9.33% 12.13% Change ROE% -60.00% 0.00% 30.00% b. ROE 2.89% 12.22% 16.89% Change ROE % -76.36% 0.00% 38.18% c. No debt No debt, ROE 2.43% 6.07% 7.89% Change ROE % -60.00% 0.00% 30.00% With debt With debt, ROE 1.88% 7.94% 10.98% Change ROE % -76.36% 0.00% 38.18%
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 15 Question 5 Input Area: Plan I: Shares outstanding 150,000 Plan II: Shares outstanding 60,000 Debt outstanding $1,500,000 Interest rate 10% a. EBIT $200,000 b. EBIT $700,000 Output Area: Price $16.67 V (I) $2,500,000 V (II) $2,500,000
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/14/2011 for the course FINANCE 620 taught by Professor Halstead during the Fall '09 term at UMBC.

Page1 / 18

sample_excel_sol_chapter_15 - Chapter 15 Problems 1-30...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online