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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%
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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Chapter 16 Question 5 Input Area: Plan I: Shares outstanding #REF! Plan II: Shares outstanding #REF! Debt outstanding #REF! Interest rate #REF! a. EBIT #REF! b. EBIT #REF! Output Area: Price #REF!
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sample_excel_sol_chapter-16 - Chapter 16 Odd Problems 1...

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