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sample_excel_sol_chapter-13

# sample_excel_sol_chapter-13 - Chapter 13 Odd Problems Input...

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Chapter 13 Odd Problems 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 13 Question 1 Input Area: Beta 1.15 Risk-free rate 4.5% Market return 11% Output Area: Cost of equity 11.98%

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Chapter 13 Question 3 Input Area: Beta 0.85 Market risk premium 8.0% T-bill rate 5.0% Dividend per share \$1.60 Growth rate 6% Stock price \$37 Output Area: 11.80% 10.58% 11.19% R E : CAPM R E : DCF R E
Chapter 13 Question 5 Input Area: Settlement 01/01/05 Maturity 01/01/28 Price (% of par) 108 Coupon rate 7% Payments per year 2 Tax rate 35% Output Area: a. Pretax cost of debt 6.33% b. Aftertax cost of debt 4.12% c. The aftertax rate is more relevant because that is the actual cost to the company.

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Chapter 13 Question 7 Input Area: Common stock 70% Debt 30% Cost of equity 15% Cost of debt 8% Tax rate 35% Output Area: WACC 12.06%
Chapter 13 Question 9 Input Area: WACC 9.80% Cost of equity 15% Cost of debt 7.5% Tax rate 35% Output Area: D/E 1.0558

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sample_excel_sol_chapter-13 - Chapter 13 Odd Problems Input...

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