Question: This spreadsheet assignment requires you to create a spreadsheet that will assist in solving the Chapter.
a) Create input variables (both labels and values) in the section below (under INPUTS). Include variables for the tax rate, the before-tax cost of debt, the risk-free rate of interest, the return on the market portfolio, the weight for debt, the weight for equity, and the growth rate in free cash flow beyond 2017. Assume it is presently the end of 2016.
b) In the indicated boxes below (under OUTPUTS), enter the Excel formulas necessary to calculate the indicated values.
Upon receiving the assignment, I will back-test the spreadsheet by changing the input values and observing whether it produces the revised answers correctly. Reca ll that in the case it is presently the end of 2016.
The information of given assignment is enclosed as below.
Attachment:- Assignment.rar