Excel working problem | Business & Finance homework help
Complete the following problem sets in Financial Management using Microsoft® Excel®:
The current beta of Austin Enterprises is 0.85.
The current market return is 12%.
The current risk-free rate is 3%.
The total equity is 20,000,000 shares at $25 per share.
Debt is sold in units of $2,000,000.
The first unit of debt has a cost of 7.5%.
The tax rate of Austin Enterprises is 40%.
For each additional unit of debt (each additional $2,000,000), the cost of debt rises by 0.85%, and the beta of Austin Enterprises rises by 0.025.