FIN385 - Fall 2017
Spreadsheet Project #2
		Ticker:	ECL
Template generated for:		Company:	Ecolab Inc.
Fiscal Year Ending	Assets	Debt	Shares	Revenue	EBIT	Interest	NetInc	Stock Price	Tax Paid	Tax rate
12/31/2016	18,330,200,000	6,687,000,000	296,700,000	13,152,800,000	1,897,500,000	264,600,000	1,229,600,000	$131.45	403,300,000	24.70%
Task #1: Based on the data above, compute the following values:
	Debt/Assets ratio
	Debt/Equity ratio
	Earnings per share
	Interest rate on debt
	Value of Interest Tax Shield
Task #2: Consider the following scenario:
	The management team is considering the possibility of increasing the firm's use of debt capital.
	They propose to implement a leveraged repurchase, under which the firm would buy back 10% of the outstanding shares,
	issuing Long-term debt as needed to finance the transaction
	Repurchase ratio =		10.00%
	How many shares would be repurchased?
		ANSWER:
	How much would the firm need to borrow to fund this purchase (ignoring transaction costs and market price effects)?
		ANSWER:
	Based on the interest rate estimated in Task #1, how much (in dollars) would this add to the annual interest expense?
		ANSWER:
	Under this proposal, calculate the following (assuming the proposed transaction has been completed):
	Shares outstanding
	Debt
	Interest Expense
	Net Income
	Earnings per share
	Debt/Assets ratio
	Debt/Equity ratio
	Value of Interest Tax Shield
	Breakeven EBIT
	How much would the proposed restructuring add to the value of the firm?
		ANSWER:
	Do you think the proposed restructuring should proceed? Why or why not?
		ANSWER: