**TI82** TxtView file generated by CalcText - Kouri  ûCap budgûù˙capital budgeting Year 0 Year 1-9 Year 10 Out/In/Incremental Out/In/Incremental Out/ In/ Incremental Sales (rien à remplir) - COGS = - Depreciation (à mettre dans In pour les deux colonnes Year 1-9 et Year 10 = EBIT - Tax (pourcentage du total ebit) = Unlevered net income + depreciation - Capital expenses ( toujours en year 0 colonne In pour le montant de la nouvelle machine) - Increase NWC (Year 0 en In (positif) et Year 10 en In (négatif)) + resale equipment (enlever le pourcentage de la tax rate) =FCF NPV = Year 0 (incremental) + Incre Year 1-9/cost of cap (0,14) (1 - 1/1,14^9) + Incre Year 10/ 1,14^10 Si NPV > 0 then take the decision to investment Growth rate of earnings: Growth rate of earnings = retention rate / expects earnings * return on investment (percentage) Price = Dividend/ (cost of cap donné dans la question - le growth rate calculé au dessus) Return exceeds cost of capital so don't raise the dividend Expected cash flow = Percentage of no default for bonds * face value + percentage of default * expect to receive percentage of default Price = expected cash flow / (1+ percentage of return on investment)^number of years CPN = coupon rate*face value / number of coupon payment The bond's price is not equal to its face value because the yield to maturity is greater than the coupon rate Unlevered cost of capital = E (price per share*number of shares) / E + D (debt) * equit cost of capital (en pourcentage) qu'on ajoute à : +D (debt) / E+D * debt cost of capital After tax debt cost of capital = r(debt cost of capital) *(1-Tc(corporate tax rate) = Weighted average cost of capital = E (price per share*number of shares) / E + D (debt) * equit cost of capital (en pourcentage) qu'on ajoute à : + D/E+D*(1-Tc)*rD (pourcentage debt cost of capital) ˙´|