BD_DC14 - Chapter 14 Capital Structure in a Perfect Market...

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Chapter 14 Capital Structure in a Perfect Market Solutions to Chapter 14 Data Case Numerical solutions to this case are available in Excel spreadsheet form, available on the Instructor’s Resource Center: http://www.aw-bc.com, with the files for the Solutions Manual, and on the Instructor’s Resource Disk. The solutions provided are based on data available at the time of writing in December 2006. These numbers will change over time, but if students use an unlevered equity cost of 12%, all of their WACCs should be 12% regardless of the numbers for debt-to-equity and bond yield. See the spreadsheet solution for a template that allows various yields to be input into the formula. The spreadsheet solution contains two worksheets. The Solutions worksheet contains the solutions to the case and the Statements worksheet contains the financial statements for The Home Depot. The spreadsheet solution allows updated financial statements to be used as well. 1.
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BD_DC14 - Chapter 14 Capital Structure in a Perfect Market...

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