sample_excel_sol_chapter-16

sample_excel_sol_chapter-16 - Chapter 16 Odd Problems 1...

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Chapter 16 Odd Problems 1 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 16 Question 1 Input Area: Market value $225,000 EBIT $19,000 Debt issue $90,000 Interest rate 8% Shares outstanding 5,000 Expansion-EBIT 30% Recession-EBIT 60% Output Area: No debt EBIT $7,600 $19,000 $24,700 Interest $- $- $- NI $7,600 $19,000 $24,700 EPS $1.52 $3.80 $4.94 Change EPS% -60.00% 0.00% 30.00% With debt Share price = $45.00 Shares repurchased = 2,000.00 EBIT $7,600 $19,000 $24,700 Interest $7,200 ### $7,200 ### $7,200 NI $400 $11,800 $17,500 EPS $0.13 $3.93 $5.83 Change EPS% -96.61% 0.00% 48.31%
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Chapter 16 Question 3 Input Area: No debt TE = MV = $225,000 With debt TE = $135,000 Output Area: a. ROE 3.38% 8.44% 10.98% Change ROE% -60.00% 0.00% 30.00% b. ROE 0.30% 8.74% 12.96% Change ROE % -96.61% 0.00% 48.31% c. No debt No debt, ROE #VALUE! #REF! #REF! Change ROE % #VALUE! #REF! #REF! With debt With debt, ROE #REF! #REF! #REF! Change ROE % #REF! #REF! #REF!
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Question 5 Input Area: Plan I: Shares outstanding #REF! Plan II:
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This note was uploaded on 03/12/2012 for the course FIN 610 taught by Professor Khawaja during the Spring '08 term at University of Maryland Baltimore.

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sample_excel_sol_chapter-16 - Chapter 16 Odd Problems 1...

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