Corporate Finance Assignment

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exinclass061021.xlsx

Sheet1

1
Mket value 275,000
EBIT 21,000
Number of shares 5,000
Debt issue 99,000
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 0 0 0
Net income 12,600 21,000 26,250
Numer shares 5,000 5,000 5,000
EPS 2.52 4.20 5.25
-40% 25%
Share price 55
Number of shares 1,800
Interest expense 7,920
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 7,920 7,920 7,920
Net income 4,680 13,080 18,330
Numer shares 3,200 3,200 3,200
EPS 1.46 4.09 5.73
-64% 40%
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 0 0 0
EBT 12,600 21,000 26,250
Tax expense 4,410 7,350 9,188
Net income 8,190 13,650 17,063
Numer shares 5,000 5,000 5,000
EPS 1.64 2.73 3.41
-40% 25%
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 7,920 0 7,920 0 7,920
EBT 4,680 13,080 18,330
Tax expense 1,638 4,578 6,416
Net income 3,042 8,502 11,915
Numer shares 3,200 3,200 3,200
EPS 0.95 2.66 3.72
-64% 40%
Market to book value of 1
ROE= Net income / Equity
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 0 0 0
Net income 12,600 21,000 26,250
Numer shares 5,000 5,000 5,000
EPS 2.52 4.20 5.25
-40% 25%
ROE 4.58% 7.64% 9.55%
-40% 25%
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 7,920 7,920 7,920
Net income 4,680 13,080 18,330
Numer shares 3,200 3,200 3,200
EPS 1.46 4.09 5.73
-64% 40%
ROE 2.66% 7.43% 10.41% 55
-64% 40% 176,000
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 0 0 0
EBT 12,600 21,000 26,250
Tax expense 4,410 7,350 9,188
Net income 8,190 13,650 17,063
Numer shares 5,000 5,000 5,000
EPS 1.64 2.73 3.41
-40% 25%
ROE 2.98% 4.96% 6.20%
-40% 25%
Recession Normal Expansion
EBIT 12,600 21,000 26,250
Interest 7,920 0 7,920 0 7,920
EBT 4,680 13,080 18,330
Tax expense 1,638 4,578 6,416
Net income 3,042 8,502 11,915
Numer shares 3,200 3,200 3,200
EPS 0.95 2.66 3.72
-64% 40%
ROE 1.73% 4.83% 6.77%
-64% 40%