Question: What are the excel keystrokes for the calculation Can you also provide the excel formulas. And not just the answers. Thank you fx A B

What are the excel keystrokes for the calculation

What are the excel keystrokes for the calculation Can you also provide

the excel formulas. And not just the answers. Thank you fx A

Can you also provide the excel formulas. And not just the answers. Thank you

fx A B D E Input Data Risk-free rate Market risk premium Unlevered beta 14 Percent 15 4.5% Financed with Before-tax 16 5.5% Debt (wd) Cost Debt (rd) 17 0.8 Tax rate 6.0% 6.1 % 0% 40.0% 18 10% 20% 19 7.0% 20 8.0% 30% 21 40% 10.0% 22 50% 12.5% 23 60% 15.5% 24 70% 18.0% 25 26 Fill in formulas in the yellow cells to find the optimum capital structure. 27 28 Equity/Value Debt/Equity Ratio (ws) 0% Levered Cost of Debt/Value A-T Cost of 29 Ratio (wd/ws) Ratio (wd) Debt (rd) Beta Equity #REF! WACC #REF! 30 #REF! 1.0 0.00 31 0 0.8 10% 0.11 0.9 32 0.25 0.43 0.92 1.005714286 20% 0.8 0.25 33 30% 0.7 0.43 34 0.67 1.00 1.12 40% 0.6 0.67 35 1.28 50% 0.5 1.00 36 1.50 1.52 60% 0.4 1.50 37 70% 2.33 1.92 0.3 2.33 38 0% 0.3 2.33 2 WACC at optimum debt ratio Optimum debt ratio

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