PELLYKW4A4Ch13Individual problems

PELLYKW4A4Ch13Individual problems - Chapter 13 Problems 2,...

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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."
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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%
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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.
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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%
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Chapter 13 Question 11 Input Area: Shares outstanding 7,500,000 Market price per share
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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.

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PELLYKW4A4Ch13Individual problems - Chapter 13 Problems 2,...

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