MUST BE COMPLETED IN EXCEL. MUST SHOW ALL WORK. MUST USE CELL REFERENCING.

BUSA 414 Financial Statement Analysis Spring 2016 Final Exam Part A (100 Points) Due Monday, May 2nd by 11:59pm Given the following information: The yield on US Treasury securities are 4.1% The market risk premium is 5.25% Answer the following questions: 1. What is the cost of equity capital for each company? (10 points) 2. What is the aftertax cost of debt for each company? (10 points) 3. What is the weighted average cost of capital for each company? (20 points) 4. What is the interest tax shield for each company? (15 points) 5. What is the required income for Year +1 for each company? (10 points) 6. What is the residual income for Year +1 for each firm? (10 points) 7. Explain the meaning of your answers in question. (10 points) All work must be done in Excel. There will be 15 points awarded for proper use of Excel. I will be looking for cell referencing (both relative and absolute), proper cell formatting, and worksheet formatting. You must duplicate the information given in the first section of this problem in your Excel worksheet and then use appropriate cell referencing (either relative of absolute) to refer to the information given when making your calculations. Clearly label your answers in the worksheet. I was easily able to complete the assignment on one page of one worksheet (1\" margins, portrait orientations, no scaling). I expect you should be able to also although fitting your work onto one page is not a requirement. Note: I am not looking for a long, convoluted answer to question 7. I was able to answer the question in 33 words. While you're not limited as to how many words you can use to answer this question, know that 30 - 50 is really all you need. Submit your Excel file thorough the Assignments section of our Canvas site using the name FinalPartA_YourLastName