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Please I need answer in Excel file with formula. a. What was the book value of Avons shareholders equity from 2001 to 2003? What were

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Please I need answer in Excel file with formula.

a.What was the book value of Avons shareholders equity from 2001 to 2003? What were Avons liabilities-to-assets and times-interest-earned ratios in these years? (Use Pretax Income plus Interest Expense as EBIT.) What do these figures suggest about Avons use of financial leverage? Consulting Table 6-5 in the text, what bond rating would Avon have in 2002 if the rating were based solely on the firms coverage ratio?
b.What percentage decline in EBIT could Avon have suffered in each year before Avon would have been unable to make its interest payments out of operating income?
c.Assuming a 35 percent corporate tax rate, and 2002 earnings before interest and taxes of $895 million, by how much did Avons $60 million interest expense reduce taxes?
d.Answer question (a) and (b) again for 2002 assuming the company had borrowed an additional $3 billion in debt at 8 percent interest at the start of the year and distributed the proceeds to shareholders as a special dividend. You may ignore the effect of added interest expense on Avons balance sheet. Might shareholders benefit from such an increase in financial leverage? Explain.
e.How would you assess Avons business risk? Setting aside the way the company is financed, how significant are the marketplace risks Avon faces; how uncertain are the companys future operating cash flows? What does your assessment of Avons business risk suggest about the level of financial leverage the company can prudently support?
f.How big a threat would it be to Avon if the company took on too much debt and had difficulty servicing it? How costly would financial distress be to Avon? Explain.
g.

Based on your analysis and any other considerations you think relevant, is Avon heavily or modestly indebted? Should the company acquire more debt, or shed existing debt? Why?

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