File Home Insert Page Layout Formulas Data Review View Help Comments Share Calibri AutoSum 11 - AP = = Wrap Text General ITI D Normal FO Bad LIX ev Fill X Cut [G Copy Format Painter Clipboard > > > Paste B I Uv A Merge & Center % Conditional Format as Formatting Table Good Sensitivity Insert Delete Format Neutral Sort & Find & Filter Select Analyze Data Clear Undo Font Alignment Number Styles Cells Editing Analysis Sensitivity E15 fx A B D F K L M N o P Q 20 R S T U V w Y Z AA AB 1 E H Currently the firm has 1 million shares outstanding, each sells for $20, total worth of shares: $20 million Currently firm has assets (buidings, equipment, patents etc) worth $20 million. All financed by shares (called equity) and no debt. The firm has an investment project requiring $10 million. There are 3 financing plans: all new equity, half & half, all debt Fill in the YELLOW cells assuming the economy does WELL and the firm realizes a 20% return on assets (ROA=0.2) FNANCING PACKAGE interest rate on deb NMEAM 3 2 3 0,1 10% $6,00 $30,00 $30,00 ROA= 0,2 FINANCING PACKAGE 1 2 8 Operating Earnings in millions $6,00 $6,00 9 interest expense in millions 10 Earnings for owners in millions $6,00 11 Number of shares in millions 12 Earnings per share EPS 1 $30,00 $0,00 $30,00 $0,00 Assets in millions Debt Equity # of shares in millions Debt/Equity Ratio Debt/Assets Ratio 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 91 q2 93 94 # Ready E %100