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Please complete using a visual basic application in Microsoft Excel. Using VBA, write THREE functions for WACC: a. A function to unlever beta b. A
Please complete using a visual basic application in Microsoft Excel.
Using VBA, write THREE functions for WACC: a. A function to unlever beta b. A function to lever beta c. A weighted-average cost of capital function. The WACC function (c.) will call both the unlevered and levered beta functions internally, and will return the firm's weighted average cost of capital to the user. (In other words, the WACC function will be the only one called by the Excel user) Your functions are ONLY allowed to draw from the set of following variables as inputs: 1) comparable firm's Beta, 2) the comparable firm's Debt/Assets ratio (not Debt/Equity) 3) the firm's own optimal debt/assets ratio, 4) market return, 5) risk free rate, 6) cost of debt, and 7) the corporate tax rate. Big Hint #1: This means that you are not allowed to use either D/E ratio as a user input. This means your VBA function(s) will need to do the DIA to D/E conversions inside the function. Big Hint #2: Your unlevered beta function will look something like: Function UnleverBeta(ComBeta as double, ComDA as double, Taxes as double) and should return the unlevered betaStep by Step Solution
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