Cross-Exchange Rate $1 to Israeli shekels $1 to Japanese Yen Cross-Exchange Rate #DIV/0! Yen/ShekelFuture Value Present Value Interest Rate Interest Rate of Periods # of Periods Starting Value Lump Sum in the Future Future Lump Sum $ Present ValueRequired Interest Rates Present Value in savings Future Value needed at retirement Additional funds Number of Periods years Required Interest Rate #NUM!a Future Value of an Annuity a Present Value of an Annuity Interest Rate Interest Rate # of Periods # of Periods Payments (per period) Payment per period Future Value $ Present Value $0.00 b) Future Value of an Annuity Present Value of an Annuity Interest Rate Interest Rate # of Periods # of Periods Payments (per period) Payment per period Future Value $ Present Value $0.00 C Future Value of an Annuity Present Value of an Annuity Interest Rate Interest Rate # of Periods # of Periods Payments (per period) Payment per period Future Value $ Present Value $0.00Bond Valuation Face Value Yield to Maturity Coupon Bond C Coupon Bond Z Years to Maturity Price of Bond C Price of Bond Z 4 S0.00 50.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 OH $0.00 $0.00Price of each of the three bonds Basic Input Data Bond A Bond B Bond C Years to maturity Coupon rate Par value Periodic payment SO SO SO Yield to maturity 9% 9% 9% Price $0.00 $0.00 $0.00 Current Yield Bond A Bond B Bond C Current yield #DIV/O! #DIV/O! #DIV/O!CAPM and Required Return Market Beta 1.0 Required Return Risk-Free Rate Market Premium 0.00% Your Company Risk-Free Rate 0.00% Market Premium 0.00% Company Beta Required Return 0.00% Closet Competitor Risk-Free Rate 0.00% Market Premium 0.00% Competitor's Beta Required Return 0.00% Difference in Required Return 0.00%Constant Growth Valuation Expected Dividend Constant Growth Required Rate of Return Current Value per Share #DIV/O!Non-Constant Growth Valuation Paid Dividend Non-Constant Growth x 2 years Constant Growth thereafter Required Rate of Return Cash Flow at Horizon or Continuing Date #DIV/O! Horizon Timeline Years 0 1 2 3 Dividends $0.0000 $0.0000 $0.0000 $0.0000 #DIV/O! Cash Flow #DIV/O! Present Value 50.0000 #DIV/O! $0.0000 Intrinsic Stock Value #DIV/0!Weighted Average Cost of Capital Debt Common Equity Cost of Debt Tax Rate Current Stock Price Last Dividend Paid Expected Constant Growth Next Dividend S Internal Equity #DIV/O! WACC #DIV/O!Capital Budgeting Criteria Year 0 1 2 3 4 5 6 7 Project A Project B Difference 50 50 50 50 50 WACC 1% WACC 18% NPV @ 11% NPV @ 18% Project A $0.00 Project A $0.00 Project B $0.00 Project B $0.00 IRR @ 11% Project A #NUM! Project B #NUM! MIRR @ 11% MIRR @ 18% Project A #DIV/O! Project A #DIV/0! Project B "#DIV/O! Project B *#DIV/0! Discount Rate NPV-A NPV-B Comparison Project A vs Project B 0.0% 51 10.0% SO SO $1 $1 11.0% SO SO $1 18.1% SO SO $1 20.0% SO SO $1 24.0% SO SO 50 30.0% SO SO 50 50 1 2 3 4 5 6 7 Crossover Rate #NUM! Series1 -Series2Cash Conversion Cycle Cash Inventory Receivables Payables conversion = conversion + collection - deferral cycle period period period (a) Enter figures below Inventory Conversion Period days Average Collection Period days Payables Deferral Period days Cash Conversion Cycle 0 days [b] Annual Sales divided into 365 days 365 days Average Sales per Day $ Average Collection Period 0 days Investment in Receivables Page 3 Step 1: Inventory Balance Annual Sales $ Cost of Goods Sold 75%% percent of sales divided into 365 days 365 days Inventory Conversion Period shep 0 $ Inventory $ Step 2: Inventory Turnover Ratio Annual Sales Inventory Turnover R #DIVYO! times a year (dj Competitor A days days days Competitor B days Page days Page 4 days 0 daysAdditional Funds Needed Last year's Sales Sales to Increase (in percent) Total Liabilities and Equity = Assets Accounts Payable Notes Payable Accrued Liability Profit Margin Retained Required increase in Assets #DIV/O! Spontaneous increase in Payables and Accruals #DIV/O! Increase in Retained Earnings S Assets/Sales #DIV/O! Next year's Sales ( forecasted) S Change in Sales S Additional Funds Needed #DIV/O