sample_excel_sol_chapter-17

# sample_excel_sol_chapter-17 - Chapter 17 Odd Problems Input...

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Chapter 17 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 17 Question 1 Input Area: EBIT \$850,000 Unlevered cost of equity 14% Corporate tax rate 35% Market value of debt \$1,900,000 Output Area: a. \$4,611,428.57 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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Question 3 Input Area: Amount of debt \$70,000 Debt interest rate 8% EBIT \$5,600 b. Growth rate 3% c. Growth rate 7% Output Area: a. Interest payment \$5,600.00 Earnings available to shareholders \$- Value of equity \$- D/V ratio 1.000 b. Earnings next year \$5,768.00 Earnings available to shareholders \$168.00 Value of equity \$3,360.00
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sample_excel_sol_chapter-17 - Chapter 17 Odd Problems Input...

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