Question: Please do the problem in EXCEL SPREADSHEET along with the FORMULAS; Refer Financial Management 16th edition by Brigham and Ehrhardt. READSHEET PROBLEM (21-10) Build a

 Please do the problem in EXCEL SPREADSHEET along with the FORMULAS;

Please do the problem in EXCEL SPREADSHEET along with the FORMULAS; Refer Financial Management 16th edition by Brigham and Ehrhardt.

READSHEET PROBLEM (21-10) Build a Model Compressed Adjusted Value Model Start with the partial model in the file Ch21 P10 Build a Model.xlsx on the textbook's Web site. Kasperov Corporation has an unlevered cost of equity of 12% and is taxed at a 25% rate. The 4-year forecasts of free cash flow and interest expenses are shown in the following table; free cash flow and interest expenses are expected to grow at a 5% rate after Year 4. Using the compressed APV model answer the following questions INPUTS (In Millions) Projected Year Free cash flow 3 2. $200 $280 $320 $340 Interest expense $100 S120 $120 $140 a. Calculate the estimated horizon value of unlevered operations at Year 4 (i.e., immediately after the Year-4 free cash flow) b. Calculate the current value of unlevered operations. c. Calculate the estimated horizon value of the tax shield at Year 4 (i.e., immediately after the Year-4 free cash flow) d. Calculate the current value of the tax shield. e. Calculate the current total value NI CASE READSHEET PROBLEM (21-10) Build a Model Compressed Adjusted Value Model Start with the partial model in the file Ch21 P10 Build a Model.xlsx on the textbook's Web site. Kasperov Corporation has an unlevered cost of equity of 12% and is taxed at a 25% rate. The 4-year forecasts of free cash flow and interest expenses are shown in the following table; free cash flow and interest expenses are expected to grow at a 5% rate after Year 4. Using the compressed APV model answer the following questions INPUTS (In Millions) Projected Year Free cash flow 3 2. $200 $280 $320 $340 Interest expense $100 S120 $120 $140 a. Calculate the estimated horizon value of unlevered operations at Year 4 (i.e., immediately after the Year-4 free cash flow) b. Calculate the current value of unlevered operations. c. Calculate the estimated horizon value of the tax shield at Year 4 (i.e., immediately after the Year-4 free cash flow) d. Calculate the current value of the tax shield. e. Calculate the current total value NI CASE

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