7. What are the values in B5, B6, and B7? 1 Market Price 2 Value (Single-stage) 3 Value (Two-stage) 4 Value (Three-stage) 5 Single-stage Assessment IF(82-$8$1."Undervalued IF82 $8S1, "Overvalued" "Fairly Valued") 6. Two-stage Assessment IF(83 $8$1,"Undervalued IF(83 $8S1, Overvalued" "Fairly Valued") 7 |Three-stage Assessment 1FBA-ses1,"Undervalued"JF(Bas8$1,"Overvalued","Fairly Valued")) 8.00 7.15 9.25 10.45 a) Undervalued, Undervalued, Overvalued b) Undervalued, Overvalued, Overvalued c) Overvalued, Overvalued, Undervalued d) Overvalued, Undervalued, Undervalued e) Overvalued, Overvalued, Overvalued Solution: What is the correct formula for cell B5? a) B2*(1-B4 B3-B1 b) B2-B4+B1-B3 c) B2 (1-B4+B1-B3 d) -B2*1-B4)-B1+B3 e) B2/(1-B4)*B1 B3 8. 1 Depreciation 27,000 150,000 50,000 2 EBIT 3 Investment in Operating Assets 4 Tax Rate 35% 5 Free Cash Flow Solution 9. What is the value of cell B4? a) b) c) d) e) 1.28% 1.49% 1.52% 1.64% 1.72% 1 Redemption Value100.00 2 Purchase Price 3 Days to Maturity 4 Bank Discount Rate 181 Solution