14-21, please see attached. I need the excel formulas and associated answers. Thank you.

Problem 14-21 Yerba Industries is an all-equity firm whose stock has a beta of 1.2 and an expected retur 12.5%. Suppose it issues new risk-free debt with a 5% yield and repurchases 40% of its s Assume perfect capital markets. a. What is the beta of Yerba stock after this transaction? b. What is the expected return of Yerba stock after this transaction? Suppose that prior to this transaction, Yerba expected earnings per share this coming yea with a forward P/E ratio (that is, the share price divided by the expected earnings for the year) of 14. c. What is Yerba's expected earnings per share after this transaction? Does this chang shareholders? Explain. d. What is Yerba's forward P/E ratio after this transaction? Does the P/E ratio go up o Unlevered beta Expected return Risk-free rate New debt level 1.20 12.50% 5.00% 40.00% New Debt/Equity Market risk premium a. What is the beta of Yerba stock after this transaction? New beta b. What is the expected return of Yerba stock after this transaction? New expected return on equity Suppose that prior to this transaction, Yerba expected earnings per share this coming yea with a forward P/E ratio (that is, the share price divided by the expected earnings for the year) of 14. c. What is Yerba's expected earnings per share after this transaction? Does this chang shareholders? Explain. Old EPS Forward P/E $1.50 14 Assumed shares 100 Price per share Old equity New debt New earnings New equity New shares New EPS d. What is Yerba's forward P/E ratio after this transaction? Does the P/E ratio go up o New P/E Price/Earnings ratio Requirements 1. In cell D16, by using cell references, calculate the new debt/equity ratio (1 pt.). 2. In cell D17, by using cell references, calculate the market risk premium (1 pt.). 3. In cell D21, by using cell references, calculate the new beta (1 pt.). 4. In cell D25, by using cell references, calculate the new expected return on equity ( 5. In cell D34, by using cell references, calculate the price per share (1 pt.). 6. In cell D35, by using cell references, calculate the old equity (1 pt.). 7. In cell D36, by using cell references, calculate the new debt (1 pt.). 8. In cell D37, by using cell references, calculate the new earnings (1 pt.). 9. In cell D38, by using cell references, calculate the new equity (1 pt.). 10. In cell D39, by using cell references, calculate the new number of shares (1 pt.). 11. In cell D40, by using cell references, calculate the new earnings per share (1 pt.). 12. In cell D44, by using cell references, calculate the new price/earnings ratio (1 pt.). 13. To answer whether the price/earnings ratio rises or falls, you need to compare the price/earnings ratio to the forward price/earnings ratio. In cell D45, type either Fa the same, or Rises (1 pt.). has a beta of 1.2 and an expected return of 5% yield and repurchases 40% of its stock. nsaction? fter this transaction? ed earnings per share this coming year of $1.50, vided by the expected earnings for the coming after this transaction? Does this change benefit transaction? Does the P/E ratio go up or down? nsaction? fter this transaction? ed earnings per share this coming year of $1.50, vided by the expected earnings for the coming after this transaction? Does this change benefit transaction? Does the P/E ratio go up or down? ate the new debt/equity ratio (1 pt.). ate the market risk premium (1 pt.). ate the new beta (1 pt.). ate the new expected return on equity (1 pt.). ate the price per share (1 pt.). ate the old equity (1 pt.). ate the new debt (1 pt.). ate the new earnings (1 pt.). ate the new equity (1 pt.). ate the new number of shares (1 pt.). ate the new earnings per share (1 pt.). ate the new price/earnings ratio (1 pt.). ises or falls, you need to compare the new nings ratio. In cell D45, type either Falls, Stays