sample_excel_sol_chapter_16

# Sample_excel_sol_cha - Chapter 16 Problems 1-10 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green

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Chapter 16 Problems 1-10 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."

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Chapter 16 Question 1 Input Area: EBIT \$750,000 Unlevered cost of equity 15% Corporate tax rate 35% Market value of debt \$1,500,000 Output Area: a. \$3,775,000.00 b. The CFO may be correct. The value calculated in part a does not include the costs of any non-marketed claims, such as bankruptcy or agency costs. V L

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Chapter 16 Question 3 Input Area: Amount of debt \$80,000 Debt interest rate 12% EBIT \$9,600 b. Growth rate 5% c. Growth rate 10% Output Area: a. Interest payment \$9,600.00 Earnings available to shareholders \$- Value of equity \$- D/V ratio 1.000 b. Earnings next year \$10,080.00 Earnings available to shareholders \$480.00 Value of equity
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## This note was uploaded on 02/14/2011 for the course FINANCE 620 taught by Professor Halstead during the Fall '09 term at UMBC.

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Sample_excel_sol_cha - Chapter 16 Problems 1-10 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green

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