Question: please show work in excel TABLE 2 Flow to Equity Approach 25% Debt 50% Debt 75% Equity 50% Equity 0% Debt 100% Equity Cash Flows

 please show work in excel TABLE 2 Flow to Equity Approach

please show work in excel

TABLE 2 Flow to Equity Approach 25% Debt 50% Debt 75% Equity 50% Equity 0% Debt 100% Equity Cash Flows to Creditors Interest 0 Pre-Tax cost of debt 5.000% 125 5.000% 250 5.000% Value of Debt 1,485 (125) 1,485 (250) Cash Flows to Shareholders EBIT 1,485 Interest 0 Pre-Tax Profits Taxes (@34%) Net Income Depreciation 500 Capital Expenses (500) Change in NWC 0 Debt Amortization 0 500 (500) 0 0 500 (500) 0 0 Residual Cashflow Cost of Equity Value of Equity Value of Assets TABLE 2 Flow to Equity Approach 25% Debt 50% Debt 75% Equity 50% Equity 0% Debt 100% Equity Cash Flows to Creditors Interest 0 Pre-Tax cost of debt 5.000% 125 5.000% 250 5.000% Value of Debt 1,485 (125) 1,485 (250) Cash Flows to Shareholders EBIT 1,485 Interest 0 Pre-Tax Profits Taxes (@34%) Net Income Depreciation 500 Capital Expenses (500) Change in NWC 0 Debt Amortization 0 500 (500) 0 0 500 (500) 0 0 Residual Cashflow Cost of Equity Value of Equity Value of Assets

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