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- 2x Σ AutoSum : A Fill 2 Sort & Clear Filter Editing Find & Select DY DZ EA - projects (Autosaved) (Autosaved) (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Calibri 11 AA = = = pt Wrap Text Percentage Ea Copy Paste B I U Format Painter - D A Merge & Center $ - % Conditional Format 8.9 Cell Insert Delete Format Formatting as Table Styles Clipboard Font Alignment Number Styles Cells DU131 for DM DNDODPDQ DR DS DI DUDV DW DX 114 115 ke = Rf + beta(Rm-Rf) RISK PREMIUM = Rm-Rf = 6% 116 REQUIRED RETURN ON EQUITY= ke = 3% +1.5*(6%) = 12.00% 117 118 D = We = [12/20] 119 Wd= [8/20] 120 121 122 WACC = We*ke+Wd*kd*(1-t) WACC = (12/20)*(12%) +(8/20)*(3%)(1-0.21) = 8.15% 124 125 126 IF THE RISK OF THE PROJECT IS SIMILAR TO THE EXISTING PROJECTS OF THE COMPANY 127 APPROPRIATE DISCOUNT RATE = WACC = 8.15% 128 129 REQUIRED RETURN ON EQUITY= ke = 3% +2*(6%) = 15.00% 00 ♡ 123 130 131 132 HON Red BETA LEVERED REPLACEMENT BOND OPTION TO WAIT STEIN indiffEPS EBIT LEASE RATIOCASHBUDGET STats MACRS BASE CASE NPV_RELEVANT ferences SENSITIVITY Sheet1 I BOI 130% 0 + ELEB * * OENG 05-11-2019

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