Question: Use Excel Functions please 1. Bobby Binckman owns and operates Soccer Stores of America. He has $150,000 of his own money in the business as
Use Excel Functions please
1. Bobby Binckman owns and operates Soccer Stores of America. He has $150,000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $750,000. Calculate the percentage of debt in the corporation, and the corporations leverage factor.
2. Buckley Bookstores, Inc., has $50,000 of equity capital, just enough money to open one store. The firm, however, can open more than one store by taking on debt. Assume that Buckley, Inc., can borrow all the money it needs at a cost of 12 percent. Use this information and the following information to complete the following table:
| Number of Bookstores Opened | 1 | 2 | 3 | 10 |
|---|---|---|---|---|
| Total Value of the Bookstores | $50,000 | $100,000 | $150,000 | $500,000 |
| Amount of Equity | $50,000 | $ 50,000 | $ 50,000 | $ 50,000 |
| Amount of Debt | $ 0 | $ 50,000 | $100,000 | $450,000 |
| Leverage Factor | ? | ? | ? | ? |
| Percentage of Debt | ? | ? | ? | ? |
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