sample_excel_sol_chapter-18

sample_excel_sol_chapter-18 - Chapter 18 Odd Problems Input...

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Chapter 18 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 18 Question 1 Input Area: EBTD $140,000 Years for project 5 Tax rate 35% Unlevered cost of equity 13% Purchase price $395,000 Debt issue amount $260,000 Cost of debt 8% Output Area: a. Aftertax earnings $91,000.00 PV of aftertax earnings $320,068.04 Price factor 0.7538 Maximum price to pay $424,609.54 b. NPV (All-equity) $22,319.49 NPV (Financing effects) $29,066.93 APV $51,386.42
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Chapter 18 Question 3 Input Area: Number of restaurants 3 Debt-equity ratio 0.40 Interest payments/store $34,000 Levered cost of equity 19% Annual sales/store $1,200,000 COGS/store $510,000 Total G&A costs $340,000 Tax rate 40% Output Area: a. Sales $3,600,000 COGS 1,530,000 Gen & Admin costs 1,020,000 Interest 102,000 EBT $948,000 Taxes 379,200 NI $568,800 Value of equity $2,993,684.21 b. Value of debt $1,197,473.68 Value of company $4,191,157.89
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Chapter 18 Question 5 Input Area: Beta 1.25
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