MGT 8813 — Georgia Tech Financial Modeling Homework 3 Bond Examples Template (Spring 2026) | 2026/2027 Updated A+ Questions and Answers | Bond Pricing, Yield, Duration & Excel Modeling

Group_Number: Put a digit such as 1 or 2, etc.
GT Login Do not put a STUDENT ID (9 digit nu
Example: mine is jgarner47

Where to get your group number? Once the groups for this class are formed, you will find a listing of
all groups and their composition of learners in a module named, "Groups for Cases and Peer Evaluation Explanation"

,
, Inputs
Firm valuation = 1; Project = 2 1
Revenues 750,000.00
Operating costs % revenues 70%
Growth for forecast period 8.000%
Growth for terminal value period 5.000%
NWC as % EBIT (1-T) Forecast period 3%
Net cap ex as % EBIT (1-T) Forecast period 47%
NWC as % EBIT (1-T) Terminal period 3%
Net cap ex as % EBIT (1-T) terminal period 27.0%



Tax rate = 40%
Debt ratio for the firm = 13%
D/E 15%
Re levered cost of equity 10.8%
RD cost of debt 4.5%
Initial debt 300,000.00
New debt issued each year 30,000.00
WACC 9.7605%

Unlevered cost of equity 10.0000%
Pretax WACC check 10.0000%

Shares outstanding 100,000.00
Initial Capital/Project cost 700,000.00
Sales price of project 150,000.00
Life 5.00
MACRS Life 5.00



MACRS TABLE
Year 1
3 0.3333
5 0.2
7 0.1429
10 0.1




Growth rates
2%

7%
Unlevered cost of




8%
9%
equity