Introduction to Corporate Finance

Ross et al.: Fundamentals

of Corporate Finance, Sixth

Edition, Alternate Edition

VI. Cost of Capital and

Long−Term Financial

Policy

17. Financial Leverage and
    Capital Structure Policy

© The McGraw−Hill^631

Companies, 2002

17.4 Bankruptcies Go to http://www.abiworld.organd follow the “Bankruptcy Head-

lines” link. How many companies filed for bankruptcy on this day?

Spreadsheet Templates17–6, 17–12

604 PART SIX Cost of Capital and Long-Term Financial Policy

A B C

54321 DEF G H

876

11109

114132

Using a spreadsheet for time value

If we invest $ 25 ,0 00 at (^12) percent, ho owf m lonog uney calculations
for the unknown of periods, so we use the fomrnal Ntil wPeER ha (ravete$ (^) , (^50) pm, (^00) t, (^0) p?v (^) fvWe need to solve
)
RaFtuPert (rueresaete Vnta Vluae (fvlue ()pv)
Periods:)
The formal entered in cell B 10 is = NP
has a negative sign on it. Also noicteth Eat rRa:te no istic ene tehtreatd p amst is d zeecrimo and that pv
al, not a percentage.
$$ 5200 ,0.1^5 ,0 02000
6 .1 16255