hello, please i want the answers in excel file except the question 4 i want the question 4 in a word file because it's a discussion topic and i want a short answer for that, i also have more problems you will help me with on finance. please check file for the question

1. Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.41 million per year, growing at a rate of 2.5 %per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capital of 7.2%, a marginal corporate tax rate of 34%, and a debt-equity ratio of 2.6. If the plant has average risk and Goodyear plans to maintain a constant debt-equity ratio, what after-tax amount must it receive for the plant for the divestiture to be profitable? A divestiture would be profitable if Goodyear received more than $_____ million after tax.(Round to one decimal place.) 2. Suppose Alcatel-Lucent has an equity cost of capital of 9.2%, market capitalization of $10.50 billion, and an enterprise value of $15.0 billion with a debt cost of capital of 5.8% and its marginal tax rate is 36%. a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the following expected free cash flows? Year 0 1 2 3 FCF ($ million) 100 51 105 69 c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is _____%. (Round to two decimal places.) 3. Assume that Ideko's market share will increase by 0.65 percent per year (e.g., Ideko's market share will be 10.45% in 2006). What production capacity will Ideko require each year for the next five years? When will an expansion become necessary (i.e., when will production volume exceed the current level by 50%)? Ideko Sales Assumptions Sales Data Growth/Year 2005 Market Size (000 units) 5.00% 9,700 Market Share 0.65% 9.8% What production capacity will Ideko require each year for the next five years? First compute the projected annual market share. Then, using these projections, calculate the projected annual production volume:(Round the volumes to one decimal place and the percentage of market share to two decimal places.) Sales Data Market Size (000 units) Market Share Production Volume (000 units) Growth/Year 5.00% 0.65% 2005 _______ _______ % ________ 4. Class, based on what we have learned so far and discussed in class, let's say that a friend tells you to buy Newco shares as soon as possible, because it is about to really increase in value. Please explain why you would or would not buy it. Or, as an alternative, would you rather purchase bonds? Cash Flows: Growth rate: Cost of equity: Cost of Debt: Tax: Post tax debt: 1.41 m per year 2.5% 8.50% 7.20% 34% 4.75% Debe Equity ratio: Debt: Equity: 0.72 0.28 Debt equity Value: 2.60 Calculation of WACC 0.7222 4.75% 0.2778 8.50% 42.82 (ANS) 0.0343 0.0236 0.0579 (WACC) Cost of equity: market cap: Enterprise value Debt cost Tax Post tax debt: b) Cash Flows Discount Factor Present Value: Net Present value c) 9.20% 10.5 billion 15 billion 5.80% 36% 3.71% Debt to value ratio 0 1 2 3 -100 51 105 69 1 0.929769 0.86447 0.803758 -100 47.41822 90.76939 55.45928 93.64688 (EV-MC)/EV 0.3000 Year FCF VL D 0 -100.00 193.65 58.09 1 51.00 157.27 47.18 2 105.00 64.15 19.25 3 69.00 - a) Debt equity Calculation of WACC Weights Cost 4.50 0.3 3.71% 10.50 0.7 9.20% 15.00 0.01 0.06 7.55% (WACC) market Size Market share Production volume Growth/yr 2005 2006 2007 5.15% 10,300.00 10,830.45 11,388.22 0.40% 10.30% 10.70% 11.10% 1,060.9 1,158.9 1,264.1 2008 2009 2010 11,974.71 12,591.41 13,239.87 11.50% 11.90% 12.30% 1,377.1 1,498.4 1,628.5 Outstanding debt Int on term loan Int tax shield email: 2005 106700 6828.8 2390.08 2006 106700 6828.8 2390.08 2007 106700 6828.8 2390.08 2008 106700 6828.8 2390.08 Please email me the questions for your further assignments cz I don't regualrly sandipagarwal23@gmail.com 2009 106700 6828.8 2390.08 2010 121200 6828.8 2390.08 ments cz I don't regualrly log in to coursehero account. So emailing me will hlp quicker communication \fTo build the pro forma income statement, we begin with Ideko's sales.(Round to the nearest $ 000.) Income Statement ($ 000) Sales 2005 75,449 2006 2007 2008 2009 2010