[SOLVED] A Financial Manager

The WACC spreadsheet provides a tool for understanding the calculation of WACC and the affect in changes of the components of WACC. The spreadsheet automates the WACC calculation so the emphasis on this assignment is on understanding the implications the various inputs to the WACC calculation. Clicking the various buttons on the Financial Statements worksheet and the Calculate WACC worksheet calculate the WACC for the company. Since some information carries over between worksheets you should start with the Financial Statements worksheet. The Scenarios worksheet has spinner buttons that automate the process of changing various factors. The Scenarios sheet allows you to vary those factors and then recalculate WACC. Since working with somebody else’s spreadsheet takes some getting used to, I suggest that you try to use this spreadsheet and then contact me via email or office hours with any questions.Assume you are a financial manager in the company. The CFO believes that understanding its WACC is critical for the company to make good financial decisions. The CFO believes that if the company’s WACC increases above 10% it will create very real hardship. The CFO has asked you to calculate the companies WACC and what effects it. You should use the spreadsheet provided.Since WACC can be calculated with either the SML or the dividend growth model, please use both WACC SML and WACC DIVIDEND GROWTH. The spreadsheet calculates WACC and allows you to perform sensitivity analysis on the key factors affecting WACC.The following factors affect WACC:1. The cost of debt (rD)2. The corporate tax rate (TC)3. The risk free rate (rRF)4. The market risk (?)5. The market rate of return (rM)6. Current Stock Price (P)7. Dividend Growth Rate (g)8. The current dividendUsing the “Sensitivity” worksheet to adjust the above factors and comment the impact.Which two factors do you think have the largest effect on WACC SML? WACC DIVIDEND GROWTH?Extra credit: Assess and comment on the company’s leverage and how any changes there might affect WACC.Please note the following:1. In somewhat of a departure from the lecture, the WACC Spreadsheet uses interest expense/debt outstanding to determine cost of debt. This is an acceptable way to determine cost of debt ifa) information regarding market value of debt is not available. Book value of debt is not perfect, but it is the best available in this case. The spreadsheet uses the market value of the equity.b) reported interest expense is not net of significant interest income.2. Tax rate (TC) is calculated using 2018 Earnings Before Taxes and Income Tax Expense. This is correct if there was nothing unusual regarding taxes in 2018. This determines what the effective tax rate was as opposed to the statutory tax rate. Often the effective tax rate is a more realistic representation of the actual taxes paid by a company.

Don't use plagiarized sources. Get Your Custom Essay on
[SOLVED] A Financial Manager
Get a 15% discount on this Paper
Order Essay
Quality Guaranteed

With us, you are either satisfied 100% or you get your money back-No monkey business

Check Prices
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know that being a student these days is hard. Because of this, our prices are some of the lowest on the market.

Instead, we offer perks, discounts, and free services to enhance your experience.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Get personalized services with My Paper Support
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Social Work and Human Services
Excellent Work!
Customer 452587, August 24th, 2021
Thank you!
Customer 452707, April 2nd, 2022
Professions and Applied Sciences
Amazing work!
Customer 452707, May 29th, 2022
Criminal Justice
Excellent Work!!!
Customer 452587, March 10th, 2022
Classic English Literature
Nicely done. Ty. Worth every penny.
Customer 452455, June 6th, 2021
ENG 099
Excellent Paper. The only 100 in the class.
Customer 452775, July 19th, 2022
As usual, the writers do amazing work.
Customer 452707, October 1st, 2022
Criminal Justice
Impressive! Will be using the service again.
Customer 452485, December 5th, 2021
Customer 452813, June 25th, 2022
Eng 099
I recveived a B on this paper but I'm not sure why.
Customer 452775, June 18th, 2022
Social Work and Human Services
Thank you for the great job
Customer 452469, February 3rd, 2021
Social Work and Human Services
Thank you
Customer 452559, July 2nd, 2021
Enjoy affordable prices and lifetime discounts
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Order Now Order in Chat

SAVE BIG FOR FINALS. Order your essay today and save 20% with the discount code SPECIAL20