Project_Corporate_Finance_Example

Project_Corporate_Finance_Example - Question 1 Equipment...

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Unformatted text preview: Question 1 Equipment 20,000 Inventory 1,000 Land 5,000 Price of Equip at Year 3 12,000 Tax Rate 35% BV at year 5 Depreciation Life 5 Profit Revenue growth rate 10% After Tax Profit Expense growth rate-1% Salvage Value Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 10,000 11,000 12,100 Expenses 5,000 4,950 4,901 Depreciation 4,000 Pre Tax Profit 1,000 Taxes 350 Net Profit 650 Depreciation 4,000 Operating Cash Flow-26,000 4,650 *Remember Print out all answers first. Use Landscape Mode. Make sure to print headings and gridlines *Second select show formulas. Then print out all answers again that show the formulas. Put these pages behind the answers when you put the project together. Remember to put your name on the project. A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Question 2 BETA Calculation Cost of Capital Date IBM Adjusted Close SP500 Adjusted CIBM Return SP500 return Debt 1/2/2009 90.26 825.88 Rating CCC 2/2/2009 91.13 735.09 0.0096388212-0.1099312249-0....
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Project_Corporate_Finance_Example - Question 1 Equipment...

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