Before grading your Unit 1 Textbook Problem assignment, you need to show your work in each cell using Excel correctly to earn credit. You also need to use the "Unit Activities Textbook Problems- Formula Shells" file to complete your Textbook Problem assignments for each Unit. It is an Excel file. It is located under the Unit 1 "Updates & Handouts" thread. There is a tab to complete all six units. So you will submit this same file throughout the course. This file is identical to the files installed in the course but it is better to use since this file contains the correct formula in each blank answer cell. That is a huge advantage for you. You just have to choose the correct given data and its cell location in place of the "?" mark. So make sure that the formula shows in each cell. This is the correct way to show your work in Excel.

To get you going, for Chapter 2, P.1 (cell B11), the answer is $14,900. In cell B11 you want to replace the formula shell that is: =B?+B?-B?-B? and replace it with the following formula that will give you the correct answer: =B6+B7-B8-B9. Then push enter. The answer of $14,900 will show in the cell. Note that cell B6 contains $7,300, Cell B7 contains $26,200, cell B8 contains $5,700, and cell B9 contains $12,900. Cells B6 thru B9 are the given data in the problem. So you just delete the question marks and replace them with the correct cell locations that contains the data you want to use. When I click on the cell I will see the inputs you used to derive the answer. That is using Excel correctly and the way you must show your work in each cell to earn credit. I am only trying to complete the unit 1 assignment.

UNIT 1: TEXTBOOK PROBLEMS CHAPTER 2: PROBLEM 1 Current Assets Net Fixed Assets Current Liabilities Long-Term Debt $7,300 $26,200 $5,700 $12,900 Shareholder Equity = Net Working Capital = #NAME? #NAME? CHAPTER 2: PROBLEM 2 Sales Costs Depreciation Expense EBIT Interest Expense EBT Taxes @ 35% Net Income = Cash Dividends Addition to Retained Earnings = Tax Rate = Income Statement $675,300 $297,800 $45,100 #NAME? $20,700 #NAME? #NAME? #NAME? $62,000 #NAME? 35% CHAPTER 2: PROBLEM 4 Taxable Income $315,000 Table 2.3 Income Taxes = Average Tax Rate = Marginal Tax Rate = Taxable Income Taxable Income (cont) Tax Rate 0 50,001 75,001 100,001 335,001 10,000,001 15,000,001 18,333,334 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 + 15% 25% 34% 39% 34% 35% 38% 35% #NAME? #NAME? #NAME? (Note: No formula needed. Just inpu CHAPTER 2: PROBLEM 5 Sales Costs Depreciation Expense EBIT Interest Expense EBT Taxes @ 40% Net Income Tax Rate $29,200 $10,400 $1,800 #NAME? $1,050 #NAME? #NAME? #NAME? 40% Operating Cash Flow = #NAME? CHAPTER 3: PROBLEM 2 Debt/Equity Ratio Return on Assets Total Equity 0.65 9.80% $850,000 Equity Multiplier = Return on Equity = Net Income = #NAME? #NAME? #NAME? CHAPTER 3: PROBLEM 6 ROE Payout Ratio Retention Ratio Sustainable Growth Rate = 16% 25% #NAME? #NAME? (Note: You must calculate the retent te: No formula needed. Just input the correct rate from the Tax Rate column) te: You must calculate the retention ratio first then the sustainable growth rate) UNIT 2: TEXTBOOK PROBLEMS CHAPTER 4: PROBLEM 2 (a thru c) Present Value Interest Rate Number of Years Future Value = A. 3,200 6% 10 #NAME? B. 3,200 8% 10 #NAME? C. 3,200 6% 20 #NAME? A. 15,451 7% 12 #NAME? B. 51,557 9% 8 #NAME? C. 886,073 14% 19 #NAME? A. 217 307 3 #NAME? B. 432 896 10 #NAME? C. 41,000 162,181 13 #NAME? A. 625 1,284 9% #NAME? B. 810 4,341 11% #NAME? C. 18,400 402,662 7% #NAME? 5% $960 $840 $1,935 $1,350 #NAME? 13% $960 $840 $1,935 $1,350 #NAME? 18% $960 $840 $1,935 $1,350 #NAME? CHAPTER 4: PROBLEM 3 Future Value = Interest Rate Number of Years Present Value = CHAPTER 4: PROBLEM 4 Present Value = Future Value Number of Years Interest Rate CHAPTER 4: PROBLEM 5 Present Value = Future Value Interest Rate Number of Years (or Periods) CHAPTER 4: PROBLEM 11 Discount Rate Year 1: Year 2: Year 3: Year 4: Present Value @ 5%, 13%, and 18% = CHAPTER 5: PROBLEM 2 A. Settlement Maturity Rate YTM Redemption (Think of Settlement as the beginning of the duratio (Think of Maturity as the end of the duration of the b (Coupon Rate) (Yield to Maturity or Required Rate of Return) (Bonds Face Value, Par Value, or Fair Price; Note th Frequency (Coupon payments are semiannual, so you put in a Basis (Always leave it blank) Bond Price #NAME? (The answer. But you need to multiply it by 10 to ge Multiply by 10 #NAME? (Microsoft gives the bond price in 2 digits. You need CHAPTER 5: PROBLEM 3 Settlement Maturity Rate Pr Redemption Frequency Basis: YTM #NAME? CHAPTER 6: PROBLEM 2 Dividend Payment Dividend Growth Rate ZYX Stock Price Required Return = $1.99 4.50% $31 #NAME? CHAPTER 6: PROBLEM 4 Dividend Dividend increase per year Required Return (Return on Investment) Stock Price = $2.65 4.75% 11% #NAME? (Think of Settlement as the beginning of the duratio (Think of Maturity as the end of the duration of the b (Coupon Rate) (The bonds price per $100 face value) (Bonds Face Value, Par Value, or Fair Price; Note th (Coupon payments are semiannual, so you put in a (Always leave it blank) D. 550,164 16% 24 #NAME? D. 54,382 483,500 26 #NAME? D. 21,500 173,439 10% #NAME? (Note: Use the built-in NPV formula in Excel) ment as the beginning of the duration of the bond) ity as the end of the duration of the bond) ty or Required Rate of Return) alue, Par Value, or Fair Price; Note that is $100, not $1,000. You make the adjustments by multiplying the answer by 10) ents are semiannual, so you put in a 2. If they are annual, then you input a 1) ut you need to multiply it by 10 to get the actual bond price) s the bond price in 2 digits. You need to multiply it by 10 to get the actual bond price) ment as the beginning of the duration of the bond) ity as the end of the duration of the bond) ce per $100 face value) alue, Par Value, or Fair Price; Note that is $100, not $1,000) ents are semiannual, so you put in a 2. If they are annual, then you input a 1) he answer by 10) UNIT 3: TEXTBOOK PROBLEMS CHAPTER 7: PROBLEM 1b Project A 15% ($14,500) $8,500 $6,800 $2,800 #NAME? Project B 15% ($9,800) $4,700 $4,200 $4,100 #NAME? (Note: You will choose the project A. $3,200 $825 $825 $825 $825 $825 $825 $825 $825 #NAME? B. $4,600 $825 $825 $825 $825 $825 $825 $825 $825 #NAME? Year 0 1 2 3 IRR = Project A ($5,200) 1,800 3,200 2,200 #NAME? Project B ($3,600) 1,300 2,100 1,800 #NAME? Discount Rate Year 0 (Initial Cost) 1 2 3 4 5 6 15% Discount Rate Year 0 Year 1 Year 2 Year 3 NPV = CHAPTER 7: PROBLEM 2 Year 0 1 2 3 4 5 6 7 8 Payback Period = CHAPTER 7: PROBLEM 8 CHAPTER 7: PROBLEM 9 ($185,000) 62,000 62,000 62,000 62,000 62,000 62,000 $185,000 C. $7,900 $825 $825 $825 $825 $825 $825 $825 $825 #NAME? 7 First find the NPV Now calculate the Profitability Index 62,000 #NAME? #NAME? (Use the built-in NPV formula in Excel but exc (Use the positive amount of the initial cost in c CHAPTER 8: PROBLEM 1 Cost of Souffle Maker Economic Life # of Souffles produced per year Cost to make each Souffle Price of each Souffle Discount Rate Tax Rate $27,000 6 2,300 $2 $7 14% 34% Step 1: First calculate the Operating Cash Flow #NAME? ($27,000) years Step 2: Place the answer you get for your Operating Cash Flow in the year 1 thru year 6 cells below Year 1 #NAME? Year 2 #NAME? Year 3 #NAME? Year 4 #NAME? Year 5 #NAME? Year 6 #NAME? Step 3: Now find the NPV. Be sure to include the initial cost by using cell C58 as it is negative NPV = #NAME? (You will accept the project if the NPV is positi (Note: You will choose the project that has the highest NPV since it creates the most wealth) uilt-in NPV formula in Excel but exclude using the Year 0 cash outflow) ositive amount of the initial cost in cell C44 in the formula. You would only accept the project if the Profitability Index is above 1) cept the project if the NPV is positive) x is above 1) UNIT 4: TEXTBOOK PROBLEMS CHAPTER 10: PROBLEM 1 Beginning Stock Price Ending Stock Price Dividend Percentage Total Return = $73 $82 $1.20 #NAME? CHAPTER 10: PROBLEM 12 Stock Return the past 5 years -18.35% Holding Period Return for the Stock = #NAME? CHAPTER 10: PROBLEM 14 Price of Preferred Stock Last Year Current Price of Preferred Stock Preferred Stock Dividend Face Value of Preferred Stock Total Return = $94.83 $96.20 4.20% $100 #NAME? CHAPTER 10: PROBLEM 15 Stock Price 3 Months Ago Current Stock Price First calculate the total return for the 3 months Then calculate the APR by multiplying the answer in cell B35 by 4 EAR (Effective Annual Rate) = $41.75 $44.07 #NAME? #NAME? #NAME? CHAPTER 11: PROBLEM 2 Stock A Stock B Total Value of the Portfolio Expected Return on Stock A Expected Return on Stock B Expected Return on the Portfolio = $3,900 $5,700 $9,600 9.50% 15.20% #NAME? CHAPTER 11: PROBLEM 12 Beta Expected Return on the Market 0.85 11.50% 14.72% 28.47% (Note: Subtract your answer by 1 to o Risk-Free Rate Expected Return on the Stock = 3.40% #NAME? CHAPTER 12: PROBLEM 1 Beta Risk-Free Rate Expected Return on the Market Cost of Equity = 1.21 3.50% 11% #NAME? CHAPTER 12: PROBLEM 5 Common Stock weight Debt weight Cost of Equity Cost of Debt Tax Rate WACC = 70% 30% 13% 6% 35% #NAME? 6.48% 16.81% btract your answer by 1 to obtain the correct percentage answer) UNIT 5: TEXTBOOK PROBLEMS CHAPTER 16: PROBLEM 1 Dividend Dividend Tax Stock Price Step 1: Calculate the After-Tax Dividend Step 2: Ex-Dividend Price = $6.30 25% $83 #NAME? #NAME? CHAPTER 16: PROBLEM 4 (a thru d) # of shares of stock outstanding Stock Price 270,000 $73 A. #NAME? B. #NAME? C. #NAME? D. #NAME? CHAPTER 16: PROBLEM 7 Stock Dividend # of shares of stock outstanding 25% 25,000 Market Value Balance Sheet: Cash Fixed Assets Total $145,000 $598,000 $743,000 Debt Equity Total $127,000 $616,000 $743,000 Find the market price of stock by using the equity and # of shares outstanding New shares outstanding = New Stock price = #NAME? #NAME? #NAME? CHAPTER 16: PROBLEM 16a Dividend Payout Ratio Earnings Per Share Adjustment Rate Dividend 1 year from now = $2.05 40% $6.20 0.3 #NAME? 5 3 1 1.15 1 1.425 4 7 UNIT 6: TEXTBOOK PROBLEMS CHAPTER 18: PROBLEM 2 Net Worth Long-term Debt Net Working Capital (Excluding Cash) Fixed Assets Current Liabilities $13,205 $8,200 $3,205 $17,380 $1,630 Cash = Net Working Capital (Including Cash) = Current Assets = #NAME? #NAME? #NAME? CHAPTER 19: PROBLEM 1 (a thru d) # of shares outstanding Current Stock Price # of new shares outstanding in the future (rights offering) Price of New Stock (or rights) 490,000 $75 80,000 $71 A. New Market Value of the Company = B. # of Rights Needed = C. Ex-Rights Price = D. Value of the Right = #NAME? #NAME? #NAME? #NAME? rights per new share CHAPTER 20: PROBLEM 4a Spot exchange rate for the Canadian Dollar 6 month forward rate U.S. Dollar One Canadian Dollar is worth $1.04 $1.06 $1.00 #NAME? (If amount is below 1, then the U.S. Dollar is wo CHAPTER 20: PROBLEM 5a Japanese Yen Exchange Rate= British Pound Exchange Rate= Cross Rate in terms of Yen per Pound = 89 1 #NAME? = = $1 $1.62 , then the U.S. Dollar is worth more and vice versa)