sample_excel_sol_chapter_17

sample_excel_sol_chapter_17 - Chapter 17 Problems 1-17...

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Chapter 17 Problems 1-17 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 17 Question 1 Input Area: EBTD $120,000 Years for project 5 Tax rate 35% Unlevered cost of equity 10% Purchase price $375,000 Debt issue amount $250,000 Cost of debt 8% Output Area: a. Aftertax earnings $78,000.00 PV of aftertax earnings $295,681.37 Price factor 0.7346 Maximum price to pay $402,482.01 b. NPV (All-equity) $20,189.52 NPV (Financing effects) $27,948.97 APV $48,138.49
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Chapter 17 Question 3 Input Area: Number of restaurants 3 Debt-equity ratio 0.40 Interest payments/store $29,500 Levered cost of equity 19% Annual sales/store $1,000,000 COGS/store $450,000 $325,000 Tax rate 40% Output Area: a. Sales $3,000,000 COGS 1,350,000 975,000 Interest 88,500 EBT $586,500 Taxes 234,600 NI $351,900 Value of equity $1,852,105.26 b. Value of debt $740,842.11 Value of company $2,592,947.37
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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_chapter_17 - Chapter 17 Problems 1-17...

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