This spreadsheet is designed to be used only in an academic context to illustrate concepts covered in
Corporate Bridge training courses. THIS SPREADSHEET IS NOT TO BE USED FOR ANY RESEARCH OR
TRADING PURPOSES. No responsibility is accepted by the Corporate Bridge Group.
Corporate Bridge does not accept any obligation to correct or update this spreadsheet or to inform
any user of the spreadsheet if the spreadsheet is inaccurate.
ts covered in
ANY RESEARCH OR
50
15
3.3x
Rating
AAA
AA
A+
A
ABBB
BB
B+
B
BCCC
CC
C
D
Spread
0.75%
1.00%
1.50%
1.80%
2.00%
2.25%
3.50%
4.75%
6.50%
8.00%
10.00%
11.50%
12.70%
14.00%
3.50%
5.00%
8.50%
5.70%
Cost of Equity
Company
Comp 1
Comp 2
Comp 3
Comp 4
Comp 5
Levered Beta
D/E
Ratio
Effective
tax rate %
Unlevered beta
1.14
0.98
1.18
0.85
1.31
0.40
1.30
1.87
0.99
0.67
30.7%
30.0%
32.0%
22.7%
10.3%
0.89
0.51
0.52
0.48
0.82
Rating
AAA
AA
A+
A
ABBB
BB
B+
B
BCCC
CC
C
D
Comp 6
Comp 7
Comp 8
Mean
Median
1.25
0.78
1.09
1.07
1.12
0.60
0.48
33.0%
0.79
0.33
0.67
1.35
1.03
0.97
1.07
1.01
9.6%
10.8%
18.0%
0.21
0.20
0.56
0.41
0.61
0.60
0.54
4.50%
5.00%
0.79
8.47%
8.50%
33.00%
5.70%
7.57%
Scenario Analysis
Debt to Equity
0.40
0.51
0.56
0.61
0.67
0.72
0.50
0.63
0.70
0.77
0.84
0.90
0.60
0.76
0.84
0.92
1.00
1.08
Debt to Equity
0.40
6.60%
6.78%
6.96%
7.14%
7.32%
0.50
7.03%
7.25%
7.48%
7.70%
7.93%
0.60
7.45%
7.72%
8.00%
8.27%
8.54%
Spread
0.75%
1.00%
1.50%
1.80%
2.00%
2.25%
3.50%
4.75%
6.50%
8.00%
10.00%
11.50%
12.70%
14.00%
d Beta
0.70
0.89
0.98
1.08
1.17
1.26
0.80
1.01
1.12
1.23
1.34
1.44
d Beta
0.70
7.88%
8.20%
8.51%
8.83%
9.15%
0.80
8.31%
8.67%
9.03%
9.39%
9.75%