The writer is very fast, professional and responded to the review request fast also. Thank you.
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%.
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.
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
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.
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 moreEach 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 moreThanks 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 moreYour 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 moreBy 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