Please see problems attached. Please put answers in EXCEL separate tabs. Thank you in advance. Problems Complete the following problems from Chapters 7, 14, and 15

?able,rn t*1 @*tilra- Part 6 (lash Distritrutic,ns lnd Caoitai Struciure prolits total 5500,000, and the firm's assets (a11 equity financed) are $5 million. The firm esti:nates that it can chanse its production orocess. addins $4 million to investment and $500,000 to lixed operating costs. This change rvill (l) reduce variable costs per tinit by $10,000 anel (2) increase output by 20 units, but (3) the sales price on all units nil have to be lou,ered to $95,000 to permil -sales of the additional output. The l'irrr has tax loss carryfonvards that render its t&r rate zero, its cost of equity is 15%, and it uses no debt. ir. Wl'rat is the incremental profit? To get a rough idea of the pro.ject's profitabitity, what is the project's expected rate of return for the next vear (detined as the increurental profit divided bv the investrnent)? Should the firm make the investment? Wh,v or u'hy not? b. Would tl.re firm's break-even point increase or decrease if it made the change? c. Would the ner'v situation expose the firm to rnore or less business risk than the old one? The Rivoli Company has no debt outstanding, and its financial position is given by the follorving ciata: (1s-8) Capital structureAnalysis ChallengingProblems 9-11 (ls-e) Capital Structure Analysis Assets (Market value = Book value) EBIT Cost of equiq,-, r, Stock price, P, Shares outstandinpl, n6 Tax rate, T (federal-p1us-state) $3,000,000 $ 500,000 10% $ 15 200,000 lOo/o The firm is considering selling bonds and simultaneously repurchasiilg sorne of its stock. if it moves to a capital structure with 30% debt based on market values, its cost of equiq,, r., rvill increase to 11% to reflect the increased risk" Bonds can be sold at a cost. 16, of 7Yt,. Rivoli is a no-gron'th flrm. Flence, all its earnings are paid out as dir.idends. E,arnings are expected to be constant orrer time. a. What effect lvould this use r:f leverage have on the vaiue of the firnr? b. What rvould be the price iif Rivoli's stock? c" What happens to the firm's earnings per share after the recapitalization? d. The $500,000 EBIT given previously is actually the expected value lir:m the tbllowing probabil irv d istribution:

Probability EBIT ($ 100,000) 200,000 500,000 800,000 1,100,000 0.10 0.20 0.40 0-20 0.1 0 Determine the times-interest-eirrned ratio for each probability. What is the probability of not covering the interest payment at the 309o debt levei? Pettit Printing Company has a total market value of $100 million, consisring of I million shares selling for $-r0 per share and $50 rnillion of 10% perpetual bonds now seiling at par. The con-rpany's EBIT is $13.24 million, and its tax rate is 159/o. Pettit can change its capitai structure by either increasing its debt to 7096 (based on market values) or decreasing it