for Dr.Loizeaux only 18 | StudyDaddy.com

calculation sets 

Prepare a Microsoft® Excel® spreadsheet with responses to the following problems adapted from the text. All calculations must be shown.

ABC Incorporated shares are currently trading for $34 per share. The firm has 1.23 billion shares outstanding. In addition, the market value of the firm’s outstanding debt is $3 billion. The 10-year Treasury bond rate is 6.75%. ABC has an outstanding credit record and has earned an AAA rating from the major credit rating agencies. The current interest rate on AAA corporate bonds is 6.5%. The historical risk premium for stocks over the risk-free rate of return is 5.0 percentage points. The firm’s beta is estimated to be 1.3 and its marginal tax rate, including federal, state, and local taxes is 30%.

  • What is the cost of equity?
  • What is the after-tax cost of debt?
  • What is the cost of capital?

Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 3 percent annually into the foreseeable future. The firm is debt-free, capital spending equals the firm’s rate of depreciation; and the annual change in working capital is expected to be minimal. The firm’s beta is estimated to be 1.5, the 10-year Treasury bond is 5.5 percent, and the historical risk premium of stocks over the risk-free rate is 6.5 percent. Publicly-traded Rand Technology, a direct competitor of Siebel’s, was sold recently at a purchase price of 10 times its 2009 after-tax earnings, which included a 15 percent premium over its current market price. Aware of the premium paid for the purchase of Rand, Siebel’s equity owners would like to determine what it might be worth if they were to attempt to sell the firm in the near future. They chose to value the firm using the discounted cash flow and comparable recent transactions methods. They believe that either method provides an equally valid estimate of the firm’s value.

  • What is the value of Siebel using the DCF method?
  • What is the value using the comparable recent transactions method?
  • What would be the value of the firm if we combine the results of both methods?       

Format your paper consistent with APA guidelines.

Doc, so reading the instructions seems it shown be an excel sheet and word doc for each company. the word doc to answer the 3 questions for each company. . Also for the calculations MUST SHOW WORK. let me know if you have any questions

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more