O Use the provided templates. Tab 1 (WACC) provides space to compute ISS' WACC which will flow to the second tab. Tab 2 (CAPEX Template) provides a format for the capital budgeting analysis Blue cells are for given data from the problem descriptions below Orange cells are to be completed by you using a formula referencing the given data. O O O . O You MUST use Excel's financial functions. Follow the pattern in the Chapter 12 exhibit I do not want to see any absolute numbers in the body of the CAPEX analysis (as in, below the red line in the example). o You may e-mail me at any time with questions concerning your understanding of the project or problems you are having developing the budget or for feedback on your progress. PROJECT PROBLEMS: Part A: WACC Calculations - 1 point total ISS'stock is currently selling for $30.00 per share. The company just paid a $1.00 dividend which is expected to increase at a rate of 5% forever. ISS' Beta is 1.25. The risk-free rate is 4.50% and the market risk premium is 6.00%. ISS has a debt issue outstanding with a 4% semiannual coupon and 14 years to maturity. The bonds are selling at 90% of par with a face value of $1,000. ISS' target capital structure is 70% equity, 30% debt. Their combined corporate tax rate is 25%. Use the first tab (WACC Calculations) in the template worksheet to calculate ISS' WACC. Your resulting WACC will flow over to the CAPEX tab. O Use the provided templates. Tab 1 (WACC) provides space to compute ISS' WACC which will flow to the second tab. Tab 2 (CAPEX Template) provides a format for the capital budgeting analysis Blue cells are for given data from the problem descriptions below Orange cells are to be completed by you using a formula referencing the given data. O O O . O You MUST use Excel's financial functions. Follow the pattern in the Chapter 12 exhibit I do not want to see any absolute numbers in the body of the CAPEX analysis (as in, below the red line in the example). o You may e-mail me at any time with questions concerning your understanding of the project or problems you are having developing the budget or for feedback on your progress. PROJECT PROBLEMS: Part A: WACC Calculations - 1 point total ISS'stock is currently selling for $30.00 per share. The company just paid a $1.00 dividend which is expected to increase at a rate of 5% forever. ISS' Beta is 1.25. The risk-free rate is 4.50% and the market risk premium is 6.00%. ISS has a debt issue outstanding with a 4% semiannual coupon and 14 years to maturity. The bonds are selling at 90% of par with a face value of $1,000. ISS' target capital structure is 70% equity, 30% debt. Their combined corporate tax rate is 25%. Use the first tab (WACC Calculations) in the template worksheet to calculate ISS' WACC. Your resulting WACC will flow over to the CAPEX tab
