ABOUT THIS CONTENT
This set of spreadsheets allow you to• Estimate the right discount rate to use for your firm, starting with the risk premium in your cost of equity and concluding with the cost of capital for your firm.
• Convert R&D and operating leases into capitalized assets
• Estimate the right capital expenditures and diagnose the terminal value assumptions to see if they are reasonable.
Spreadsheets included:
• readme1s.xls - This file describes the programs in this section and provides some insights into their usage.
• wacccalc.xls - This spreadsheet allows you to estimate the cost of capital for your firm.
• cpxest.xls - This program summarizes the three approaches that can be used to estimate the net capital expenditures for a firm, when it reaches stable growth.
• oplease.xls - This program converts operating lease expenses into financing expenses and restates operating income and debt outstanding.
• R&DConv.xls - This program converts R& D expenses from operating to capital expenses, estimates a value for the research asset and restates operating income.
• implprem.xls - This spreadsheet calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation.