FIN3403 USF Business And Financial Math Excelsheet Help There are two tabs: directions and questions to complete. Please follow the instructions given and

FIN3403 USF Business And Financial Math Excelsheet Help There are two tabs: directions and questions to complete. Please follow the instructions given and the example on H4 on the questions. You MUST show work on how you got the right answer when I click on the box Directions
This assignment consists of questions that relate to textbook chapter 6,7,9,10 a
While testing your proficiency at entering formulas in Excel, it will also be a goo
additional resource to help prepare for the second exam.
There are 9 questions on the next sheet of this workbook, most of which have
parts. For each question, the correct solution figure is given to you in a cell hig
in gray. Your task is to create a formula in the answer cell highlighted in
results in the same, correct, figure. To get full credit, you must use either an E
function (when applicable) or basic formula to get the solutions. Functions m
include pv, npv, irr, etc. Basic formulas utilize multiplication (*), division (/), add
(+), subtraction (-) and grouping with parentheses.
You do not have to use cell references to solve these problems, like you do for
Excel project questions. You can simply type the figures into your formula. For
questions that provide a table of figures, it would however be most efficient to
references for those. For other questions, if you would like to use cell referenc
can simply type the relevant figures into separate cells below or to the right of
word problem and then reference those cells in your formula.
Since the solution figure to each problem is given, you will know instantly if you
formula is correct and can leverage your resources as needed to investigate an
discrepancies. Resources may be other homework problems completed previo
Study Plan, Excel tutorials in MyCourses or elsewhere, etc.
Once you have completed the questions, submit your saved file to the appropr
MyCourses drop box in Week 8. Please note that your professor will review a
grade this assignment after the due date and will not preview or pre
before the second exam. Remember again that work must be shown via an Ex
function or basic formula in the yellow box to get credit.
The assignment is worth a total of 50 points. Each question includes the applic
points available for that problem.
***Not for distribution or sharing outside of this course***
ook chapter 6,7,9,10 and 11.
el, it will also be a good
most of which have multiple
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is course***
Question 1a
$60
Question 1b
Madoff Corporation raised money through a bond issue with a total principal value
a face (par) value of $1,000 and coupon rate of 6%. The company’s applicable tax r
a) What is the annual coupon payment bond holders expect to receive?
b) What is the total after-tax annual interest expense to the company?
$142,200
4 points
Question 2
$1,085.84
Your good friend is looking to buy a bond that pays semi-annual interest. The par v
If her required rate of return is 3%, what is the most you recommend your friend p
4 points
Question 3
A preferred stock has a par value of $110 and pays an annual dividend of 5% of par
If similar investments have an annual rate of return of 3%, what is the current valu
$183.33
4 points
Question 4a
$137.33
Question 4b
2%
4 points
Question 5a
Gillette’s most recent annual dividend was $8 per share. The company expects the
year going forward.
a) If investors require a 9% return, what is the current value of Gillette’s stock? (rou
b) If the stock currently trades at $116.57 per share, what is the dividend growth ra
For part B, show a formula in the answer cell that represents the final step in solving for ‘g’ o
That is, you have to isolate ‘g’ in the model and this takes a few steps as you use algebra t
in your answer cell the final calculation of this process.
An analyst uses a two-stage variable growth model to estimate the value of Old Ma
$3.24
$3.50
$3.78
$3.93
The most recent annual dividend paid by the company was $3 per share. The analy
8% per year for the next 3 years and then drop to 4% starting in year 4 and remain
The required rate of return used for the analysis is 10%
a) What are the expected dividends for the next 4 years?
b) What is the value of the stock attributable to the first 3 years of dividends? (use
c) What is the value of the stock at the end of year 3? (use constant-growth model)
d) What is the value of the stock attributable to years 4 and beyond? (use pv functi
e) What is the total value of the stock?
4 points
Question 5b Question 5c Question 5d Question 5e
8 points
Question 6a
$8.68
$65.50
$49.21
$57.89
$2,452,153
Question 6b
A music company is considering creating the world’s largest piano. Cost and cash fl
The company requires a 12% return on its capital.
a) What is the present value of the yearly cash flows? (round to nearest dollar)
b) What is the net present value of the project? (round to nearest dollar)
($47,847)
Question 6c
c) What is the internal rate of return of the project? (round to two decimal places)
11.69%
6 points
Question 7a
4.00
Question 7b
3.50
4 points
Two projects, Alpha and Beta, are being considered using the payback method. Eac
The annual cash flows for each project are listed below.
a) What is the pay back period in years for Alpha? (round to two decimal places)
b) What is the pay back period in years for Beta? (round to two decimal places)
Question 8
7.16%
A fitness equipment manufacturer is capitalized with long-term debt, preferred sto
and cost of each capital source is in the table below. The cost of debt is the after-ta
What is the firm’s weighted average cost of capital? (round to two decimal places)
4 points
Question 9a
A flour mill is considering buying a new jumbo sifter, which would have an installed
would replace the existing sifter that was purchased 3 years ago at an installed cos
$42,600
moves forward with the replacement, it could sell the old sifter for $19,000. Purcha
Question 9b in the company’s current assets increasing by $10,000 and current liabilities increa
The company uses the 5-year MACRS table for depreciation and is taxed at 21%.
$17,400
a) What is the accumulated depreciation of the old sifter?
Question 9c b) What is the current book value of the old sifter?
c) What is the amount of depreciation recapture/recovery?
$1,600
Question 9d d) What is the tax on the sale of the old sifter?
$336
Question 9e e) What are the after-tax proceeds from the sale of the old sifter?
$18,664
Question 9f f) What is the change in Net Working Capital?
$2,000
Question 9g g) What is the initial investment for the project?
$63,336
8 points
***Not for distribution or sharing outside of th
End of Document
h a total principal value of $3,000,000. Each bond has
mpany’s applicable tax rate is 21%.
60
nual interest. The par value is $1,000 and the coupon
commend your friend pay for the bond? (round to nearest cent)
what is the current value of this preferred stock. (round to nearest cent)
e company expects the growth of its dividends to be stable at 3% per
of Gillette’s stock? (round to nearest cent)
the dividend growth rate investors expect?
inal step in solving for ‘g’ of the applicable valuation model.
w steps as you use algebra to move figures from one side to the other. Show
mate the value of Old Maid Company’s common stock.
$3 per share. The analyst expects dividends to increase
ng in year 4 and remain stable for the foreseable future.
ears of dividends? (use NPV function)
beyond? (use pv function, where answer to part C is the fv)
piano. Cost and cash flow details are listed below.
Cost of Project
($2,500,000)
Yr 1 cash flow
(300,000)
Yr 2 cash flow
Yr 3 cash flow
(150,000)
50,000
Yr 4 cash flow
250,000
Yr 5 cash flow
Yr 6 cash flow
800,000
1,200,000
Yr 7 cash flow
3,500,000
he payback method. Each has an initial cost of $100,000.
Year Project Alpha
Project Beta
1
25,000
15,000
2
3
25,000
25,000
25,000
45,000
4
5
25,000
25,000
30,000
20,000
6
25,000
15,000
erm debt, preferred stock and common stock. The amount
st of debt is the after-tax cost.
to two decimal places)
Amount ($)
Long-term debt
Preferred stock
Common stock
800,000
350,000
3,900,000
Total
5,050,000
Cost (%)
would have an installed cost of $80,000. The new one
s ago at an installed cost of $60,000. If the company
fter for $19,000. Purchasing the new sifter would result
current liabilities increasing by $8,000.
and is taxed at 21%.
4%
5%
8%
haring outside of this course***
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FIN3403 Excel A
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2 Question 1a Madoff Corporation raised money through a bond issue with a total principal value of $3,000,000. Each bond has
a face (par) value of $1,000 and coupon rate of 6%. The company’s applicable tax rate is 21%.
$60 a) What is the annual coupon payment bond holders expect to receive?
5 Question 1bb) What is the total after-tax annual interest expense to the company?
4
60
6
7
$142,200
8
4 points

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