PELLYKW4A4Ch13Individual problems

# PELLYKW4A4Ch13Individual problems - Chapter 13 Problems 2,...

This preview shows pages 1–6. Sign up to view the full content.

Chapter 13 Problems 2, 5, 7, 11, 14 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."

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Chapter 13 Question 2 Input Area: Dividend per share \$2.40 Growth rate 5.50% Stock price \$52 Output Area: Cost of equity 10.37%
Chapter 13 Question 5 Input Area: Settlement 01/12/05 Maturity 01/12/35 Price (% of par) 108 Coupon rate 7% Payments per year 2 Tax rate 35% Output Area: a. Pretax cost of debt 6.40% b. Aftertax cost of debt 4.16% c. The aftertax rate is more relevant because that is the actual cost to the company.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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 11.96%
Chapter 13 Question 11 Input Area: Shares outstanding 7,500,000 Market price per share

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 02/12/2012 for the course MBA 551 taught by Professor Smith during the Spring '11 term at Indiana Wesleyan.

### Page1 / 6

PELLYKW4A4Ch13Individual problems - Chapter 13 Problems 2,...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online