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If you were to graph the value of the firm as a function of the values of w d given in the original data sheet,
If you were to graph the value of the firm as a function of the values of wd given in the original data sheet, at which value of wd would the resulting curve be at its highest value?
L20 X G G 1 J M o Q H FCF in mil. K Tax Rate N Mil. Shares 481 0.28 10 Value of Firm S&P500 10 yr. T-Note I'm r Pf 10.00% 3.47% re B B 1.0500 WACC A B B C D E F 1 FIN401 Project 3 - Estimating Optimal Capital Structure 2 Fall 2021 S&P 3 Pre-tax After-tax Bond 4 W. W. rd ro Rating 5 0.000 1.000 2.65% 1.91% AAA 6 0.065 0.935 2.96% AA+ 7 0.130 0.870 3.25% AA 8 0.195 0.805 3.56% AA- 9 0.260 0.740 3.75% A+ 10 0.325 0.675 3.89% 11 0.390 0.610 4.01% A- 12 0.455 0.545 4.65% BBB+ 13 0.520 0.480 5.25% BBB 14 0.585 0.415 6.23% BBB- 15 0.650 0.350 7.22% CCC+ 16 0.715 0.285 7.84% CCC 17 0.780 0.220 9.12% CCC 18 0.845 0.155 10.56% CC 19 0.910 0.090 12.62% 20 0.975 0.025 18.45% D 21 22 23 24 25 Version 1 + Ready EO E + 100% L20 X G G 1 J M o Q H FCF in mil. K Tax Rate N Mil. Shares 481 0.28 10 Value of Firm S&P500 10 yr. T-Note I'm r Pf 10.00% 3.47% re B B 1.0500 WACC A B B C D E F 1 FIN401 Project 3 - Estimating Optimal Capital Structure 2 Fall 2021 S&P 3 Pre-tax After-tax Bond 4 W. W. rd ro Rating 5 0.000 1.000 2.65% 1.91% AAA 6 0.065 0.935 2.96% AA+ 7 0.130 0.870 3.25% AA 8 0.195 0.805 3.56% AA- 9 0.260 0.740 3.75% A+ 10 0.325 0.675 3.89% 11 0.390 0.610 4.01% A- 12 0.455 0.545 4.65% BBB+ 13 0.520 0.480 5.25% BBB 14 0.585 0.415 6.23% BBB- 15 0.650 0.350 7.22% CCC+ 16 0.715 0.285 7.84% CCC 17 0.780 0.220 9.12% CCC 18 0.845 0.155 10.56% CC 19 0.910 0.090 12.62% 20 0.975 0.025 18.45% D 21 22 23 24 25 Version 1 + Ready EO E + 100%Step by Step Solution
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