Question

FIN3310: INTERMEDIATE FINANCIAL ANALYSIS SPREADSHEET ASSIGNMENT: Chapter 11 1. Retrieve the file HWChapter1l and solve Problem 11-2, Problem 11-3 and Problem 11-7 using the organizational design displayed in the worksheet file. Do not modify the fonts, format, or cell addresses. 2. Problem 11-7: Enter an equation that solves for the value required in Cell C33. 3. Problem 11-7: Enter values in Cells c36:C38 for the current (not Target) financing weights (proportions) Capital structure. 4. Problem 11-7: Enter an equation that solves for the value required in Cell C41. Apply the Current (not Target) financing weights entered in Part 7 and retain the values reported in Cells C29:C32. 9. Print the worksheet.

Answer 1

	Current $		Target %
Debt	$300		30%	Wd
Preferred stock	$50		5%	Wps
Common Equity	$250		65%	Ws
rd	6%
Tax rate	40%
rps	5.80%
rs	12%
WACC	3.51%
Current Structure
	50.00%	wd
	8.33%	wps
	41.67%	ws
WACC using current weights
WACC	7.28%

WORKINGS

Book1 Excel Sign in AutoSave Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Share File Home Calibri Wrap Text General Conditional Fornat as Cell Insert Delete Fornat Formatting. Table- Styles Paste Filter Select Alignment Number Stles Cells Editing Clipboard A24 24 25 26 27 28 Target % 0.3 0.05 0.65 Current Debl Preferred stock Common Equity Wd 250 Ws 0.06 0.4 0.058 0.12 -E25 (C29 (1-C30) E26 C31 E27 C32) rd 30 31 32 Tax rate WACC 34 35 36 37 38 39 Current Structure -C25/SUMISC$25:$C$27) -C26/SUM(SC$25:5CS27) -C2//SUM(SC$25:$CS2) wd WACC using currenl weighl WACC C36 C29(1C30)+C37*C31+C38 C32 42 Sheet1 Sheet2 Sheet3 Ready +100% ENG 8:52 AM