365055740.

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WACC

This document is for training purposes only. Financial Edge accepts no responsibility or liability for any other purpose or usage.

2017 Financial Edge Training

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Info

WACC
Workout Information
Features Model Details
Calculating WACC Company name ABC Incorporated
Establish cost of debt Date 31-Dec-15
Establish cost of equity Currency USD
Relever beta Units Millions
Analyst Name Firstname Lastname
Circular Switch 0.0

Tab Structure Formatting

Workout
Input
Hard coded
Formulas

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Workout

Valuation
WACC
Workout 1
Calculate WACC for the below company.

Cost of equity 10.0%

Cost of debt 5.0%
Tax rate 25.0%
Equity value 250.0
Debt value 500.0

Debt / debt and equity 66.7%

Equity / debt and equity 33.3%

WACC 5.8%

Workout 2
Calculate WACC for the below company.

Cost of equity 8.0%

Cost of debt 4.0%
Tax rate 32.0%
Proportion of equity to debt 40.0%

Debt / debt and equity 71.4%

Equity / debt and equity 28.6%

WACC 4.2%

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Workout

Workout 3
Cost of debt 6.0%
Tax rate 35.0%
Cost of equity 9.0%
Current debt 80.0
Current cash 10.0
Market capitalization 150.0
Long term debt percentage of financing 25.0%
Long term equity percentage of financing 75.0%

WACC 7.7%

Workout 4
Calculate the cost of equity for the below company.

Beta 1.5
Risk free interest rate 1.5%
Market risk premium 7.0%
Tax rate 28.0%
Leverage ratio 150.0%

Cost of equity 12.0%

Workout 5
Calculate the WACC for the below company.

Ten year government bond 2.0%

Estimated equity risk premium 6.0%
Beta 1.1
Cost of debt 5.0%
Tax rate 25.0%

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Workout

Percentage equity in target capital structure 70.0%

Percentage debt in target capital structure 30.0%

Cost of equity 8.6%

Cost of debt after tax 3.8%

Weighted average cost of capital 7.1%

Workout 6
Using the following information calculate the company's weighted average cost of capital.

Ten year government bond 2.0%

Estimated equity risk premium 7.0%
Beta 1.7
Existing cost of debt 7.0%
Cost of debt with target capital structure 5.0%
Tax rate 25.0%

Percentage equity in existing capital structure 40.0%

Percentage debt in existing capital structure 60.0%
Percentage equity in target capital structure 60.0%
Percentage debt in target capital structure 40.0%

Unlevered beta 0.8

Relevered beta 1.2
Cost of debt after tax in target cap. structure 3.8%
Cost of equity in target capital structure 10.4%
Weighted average cost of capital 7.7%

Workout 7
Calculate WACC for the below company.

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Workout

Unlevered Beta 1.0

Risk free rate 3.5%
Market risk premium 4.0%
Corporate bond spread over risk free rate for company with comparable credit rating 2.0%
Fully diluted number of shares outstanding 1,250.0
Current share price 1.6
Book value of outstanding debt 800.0
Market value of outstanding debt 825.0
Tax rate 35.0%

Market value equity 1,937.5 Levered Beta = Unlevered Beta *(1+(1-Tax ra

Levered beta 1.3 Unlevered Beta =Levered Beta /(1+(1-Tax rat
Cost of equity 8.6%

Cost of debt 5.5%

Market value of debt + equity 2,762.5
WACC 7.1%

Workout 8
Calculate industry beta for the following group of companies.

Company name Beta Debt % Equity % Tax rate Unlevered beta

Company A 1.10 25% 75% 30.0% 0.89 Levered Beta = Unlevered Beta *(1+(1-Tax ra
Company B 1.15 29% 71% 32.0% 0.90 Unlevered Beta =Levered Beta /(1+(1-Tax rat
Company C 1.02 32% 68% 35.0% 0.78
Company D 1.32 41% 59% 37.0% 0.92
Company E 1.40 50% 50% 28.0% 0.81

Average industry beta 0.86

Workout 9

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Workout

Calculate Beta for Univision, given the industry data below.

Marginal tax rate for all companies 35.0%

Beta Market cap Total debt Unlevered beta Levered Beta = Unlevered Beta *(1+(1-Tax ra
Walt Disney 1.4 160,921.7 17,336.0 1.3 Unlevered Beta =Levered Beta /(1+(1-Tax rat
Time Warner 1.2 59,301.1 23,792.0 1.0
21st Century Fox 1.3 57,203.4 19,039.0 1.1
CBS 1.8 24,810.6 8,448.0 1.5
Viacom 1.3 15,395.5 12,285.0 0.8
Discovery Communications 1.5 11,467.5 7,735.0 1.0
Scripps Networks 1.2 6,096.8 4,010.3 0.9

Industry average beta 1.1

Univision target equity 80.0%
Univision target debt 20.0%
Univision unlevered beta 1.1
Univision levered beta 1.3

Workout 10
Calculate IBMs beta versus the S&P500 for the last year, using the price history below. Go to "Excel options" and go to
Whre it says "Manage" choose
Date Price Price Return Return In the box that appear, tick "An
IBM-US SP50 IBM-US SP50 Go to "data analysis" on the da
03-May-2016 143.5 2,081.4 (1.2%) 0.0% In the box that appears click on
02-May-2016 145.3 2,081.4 (0.5%) 0.8% Where it says "input Y range" s
29-Apr-2016 145.9 2,065.3 (0.8%) (0.5%) Where it says "input X range" s
28-Apr-2016 147.1 2,075.8 (2.3%) (0.9%) Tick box to show graph or "line
27-Apr-2016 150.5 2,095.2 0.9% 0.2% Add trendline by right clicking
26-Apr-2016 149.1 2,091.7 0.2% 0.2% Once a trendline is added, on t
25-Apr-2016 148.8 2,087.8 0.2% (0.2%) You can now see the beta as 0.
22-Apr-2016 148.5 2,091.6 (0.5%) 0.0%
21-Apr-2016 149.3 2,091.5 2.2% (0.5%)

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20-Apr-2016 146.1 2,102.4 1.5% 0.1%

19-Apr-2016 144.0 2,100.8 (5.6%) 0.3%
18-Apr-2016 152.5 2,094.3 0.5% 0.7%
15-Apr-2016 151.7 2,080.7 0.4% (0.1%)
14-Apr-2016 151.2 2,082.8 (0.0%) 0.0%
13-Apr-2016 151.2 2,082.4 1.1% 1.0%
12-Apr-2016 149.6 2,061.7 0.3% 1.0%
11-Apr-2016 149.3 2,042.0 (0.1%) (0.3%)
08-Apr-2016 149.4 2,047.6 0.7% 0.3%
07-Apr-2016 148.3 2,041.9 (1.2%) (1.2%)
06-Apr-2016 150.0 2,066.7 0.0% 1.1%
05-Apr-2016 150.0 2,045.2 (1.4%) (1.0%)
04-Apr-2016 152.1 2,066.1 (0.3%) (0.3%)
01-Apr-2016 152.5 2,072.8 0.7% 0.6%
31-Mar-2016 151.5 2,059.7 2.0% (0.2%)
30-Mar-2016 148.4 2,063.9 (0.6%) 0.4%
29-Mar-2016 149.3 2,055.0 0.6% 0.9%
28-Mar-2016 148.4 2,037.0 0.3% 0.1%
24-Mar-2016 148.0 2,035.9 1.8% (0.0%)
23-Mar-2016 145.4 2,036.7 (1.8%) (0.6%)
22-Mar-2016 148.1 2,049.8 (0.4%) (0.1%)
21-Mar-2016 148.6 2,051.6 1.0% 0.1%
18-Mar-2016 147.1 2,049.6 0.0% 0.4%
17-Mar-2016 147.0 2,040.6 1.6% 0.7%
16-Mar-2016 144.8 2,027.2 1.3% 0.6%
15-Mar-2016 143.0 2,015.9 0.1% (0.2%)
14-Mar-2016 142.8 2,019.6 0.3% (0.1%)
11-Mar-2016 142.4 2,022.2 1.5% 1.6%
10-Mar-2016 140.2 1,989.6 (0.2%) 0.0%
09-Mar-2016 140.4 1,989.3 1.0% 0.5%
08-Mar-2016 139.1 1,979.3 (0.8%) (1.1%)
07-Mar-2016 140.2 2,001.8 1.7% 0.1%

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04-Mar-2016 137.8 2,000.0 0.0% 0.3%

03-Mar-2016 137.8 1,993.4 1.1% 0.3%
02-Mar-2016 136.3 1,986.5 1.4% 0.4%
01-Mar-2016 134.4 1,978.3 2.5% 2.4%
29-Feb-2016 131.0 1,932.2 (0.8%) (0.8%)
26-Feb-2016 132.0 1,948.1 (1.8%) (0.2%)
25-Feb-2016 134.5 1,951.7 1.3% 1.1%
24-Feb-2016 132.8 1,929.8 0.3% 0.4%
23-Feb-2016 132.4 1,921.3 (1.0%) (1.2%)
22-Feb-2016 133.8 1,945.5 0.5% 1.4%
19-Feb-2016 133.1 1,917.8 0.5% (0.0%)
18-Feb-2016 132.5 1,917.8 5.0% (0.5%)
17-Feb-2016 126.1 1,926.8 2.7% 1.6%
16-Feb-2016 122.7 1,895.6 1.4% 1.7%
12-Feb-2016 121.0 1,864.8 2.7% 2.0%
11-Feb-2016 117.9 1,829.1 (1.9%) (1.2%)
10-Feb-2016 120.2 1,851.9 (3.1%) (0.0%)
09-Feb-2016 124.1 1,852.2 (2.3%) (0.1%)
08-Feb-2016 127.0 1,853.4 (1.2%) (1.4%)
05-Feb-2016 128.6 1,880.1 0.7% (1.8%)
04-Feb-2016 127.7 1,915.4 2.3% 0.2%
03-Feb-2016 124.7 1,912.5 1.4% 0.5%
02-Feb-2016 122.9 1,903.0 (1.5%) (1.9%)
01-Feb-2016 124.8 1,939.4 0.0% (0.0%)
29-Jan-2016 124.8 1,940.2 2.1% 2.5%
28-Jan-2016 122.2 1,893.4 1.0% 0.6%
27-Jan-2016 121.0 1,882.9 (1.3%) (1.1%)
26-Jan-2016 122.6 1,903.6 0.4% 1.4%
25-Jan-2016 122.1 1,877.1 (0.3%) (1.6%)
22-Jan-2016 122.5 1,906.9 (0.3%) 2.0%
21-Jan-2016 122.9 1,869.0 0.9% 0.5%
20-Jan-2016 121.9 1,859.3 (4.9%) (1.2%)

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19-Jan-2016 128.1 1,881.3 (1.5%) 0.1%

15-Jan-2016 130.0 1,880.3 (2.2%) (2.2%)
14-Jan-2016 132.9 1,921.8 1.3% 1.7%
13-Jan-2016 131.2 1,890.3 (1.3%) (2.5%)
12-Jan-2016 132.9 1,938.7 (0.2%) 0.8%
11-Jan-2016 133.2 1,923.7 1.2% 0.1%
08-Jan-2016 131.6 1,922.0 (0.9%) (1.1%)
07-Jan-2016 132.9 1,943.1 (1.7%) (2.4%)
06-Jan-2016 135.2 1,990.3 (0.5%) (1.3%)
05-Jan-2016 135.9 2,016.7 (0.1%) 0.2%
04-Jan-2016 136.0 2,012.7 (1.2%) (1.5%)
31-Dec-2015 137.6 2,043.9 (1.2%) (0.9%)
30-Dec-2015 139.3 2,063.4 (0.3%) (0.7%)
29-Dec-2015 139.8 2,078.4 1.6% 1.1%
28-Dec-2015 137.6 2,056.5 (0.5%) (0.2%)
24-Dec-2015 138.3 2,061.0 (0.2%) (0.2%)
23-Dec-2015 138.5 2,064.3 0.4% 1.2%
22-Dec-2015 137.9 2,039.0 1.8% 0.9%
21-Dec-2015 135.5 2,021.1 0.4% 0.8%
18-Dec-2015 134.9 2,005.5 (1.4%) (1.8%)
17-Dec-2015 136.8 2,041.9 (1.8%) (1.5%)
16-Dec-2015 139.3 2,073.1 1.1% 1.5%
15-Dec-2015 137.8 2,043.4 1.4% 1.1%
14-Dec-2015 135.9 2,021.9 1.0% 0.5%
11-Dec-2015 134.6 2,012.4 (1.6%) (1.9%)
10-Dec-2015 136.8 2,052.2 0.1% 0.2%
09-Dec-2015 136.6 2,047.6 (1.0%) (0.8%)
08-Dec-2015 138.1 2,063.6 (1.1%) (0.6%)
07-Dec-2015 139.6 2,077.1 (0.6%) (0.7%)
04-Dec-2015 140.4 2,091.7 1.1% 2.1%
03-Dec-2015 138.9 2,049.6 (0.6%) (1.4%)
02-Dec-2015 139.7 2,079.5 (1.1%) (1.1%)

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01-Dec-2015 141.3 2,102.6 1.3% 1.1%

30-Nov-2015 139.4 2,080.4 0.7% (0.5%)
27-Nov-2015 138.5 2,090.1 0.3% 0.1%
25-Nov-2015 138.0 2,088.9 (0.4%) (0.0%)
24-Nov-2015 138.6 2,089.1 0.1% 0.1%
23-Nov-2015 138.5 2,086.6 (0.0%) (0.1%)
20-Nov-2015 138.5 2,089.2 1.3% 0.4%
19-Nov-2015 136.7 2,081.2 0.7% (0.1%)
18-Nov-2015 135.8 2,083.6 1.5% 1.6%
17-Nov-2015 133.8 2,050.4 0.1% (0.1%)
16-Nov-2015 133.7 2,053.2 1.5% 1.5%
13-Nov-2015 131.8 2,023.0 (1.0%) (1.1%)
12-Nov-2015 133.0 2,046.0 (1.5%) (1.4%)
11-Nov-2015 135.0 2,075.0 (0.3%) (0.3%)
10-Nov-2015 135.5 2,081.7 0.1% 0.2%
09-Nov-2015 135.3 2,078.6 (2.1%) (1.0%)
06-Nov-2015 138.3 2,099.2 (1.2%) (0.0%)
05-Nov-2015 139.9 2,099.9 (1.2%) (0.1%)
04-Nov-2015 141.6 2,102.3 (0.2%) (0.4%)
03-Nov-2015 141.9 2,109.8 1.1% 0.3%
02-Nov-2015 140.4 2,104.0 0.2% 1.2%
30-Oct-2015 140.1 2,079.4 (0.3%) (0.5%)
29-Oct-2015 140.6 2,089.4 (0.2%) (0.0%)
28-Oct-2015 140.8 2,090.4 2.2% 1.2%
27-Oct-2015 137.9 2,065.9 (4.0%) (0.3%)
26-Oct-2015 143.7 2,071.2 (0.7%) (0.2%)
23-Oct-2015 144.7 2,075.2 0.4% 1.1%
22-Oct-2015 144.1 2,052.5 2.2% 1.7%
21-Oct-2015 140.9 2,018.9 0.2% (0.6%)
20-Oct-2015 140.6 2,030.8 (5.7%) (0.1%)
19-Oct-2015 149.2 2,033.7 (0.8%) 0.0%
16-Oct-2015 150.4 2,033.1 0.2% 0.5%

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15-Oct-2015 150.1 2,023.9 0.1% 1.5%

14-Oct-2015 150.0 1,994.2 0.3% (0.5%)
13-Oct-2015 149.6 2,003.7 (1.0%) (0.7%)
12-Oct-2015 151.1 2,017.5 (0.8%) 0.1%
09-Oct-2015 152.4 2,014.9 0.1% 0.1%
08-Oct-2015 152.3 2,013.4 1.5% 0.9%
07-Oct-2015 150.1 1,995.8 0.9% 0.8%
06-Oct-2015 148.8 1,979.9 (0.2%) (0.4%)
05-Oct-2015 149.0 1,987.1 3.1% 1.8%
02-Oct-2015 144.6 1,951.4 0.7% 1.4%
01-Oct-2015 143.6 1,923.8 (1.0%) 0.2%
30-Sep-2015 145.0 1,920.0 1.8% 1.9%
29-Sep-2015 142.5 1,884.1 (0.0%) 0.1%
28-Sep-2015 142.5 1,881.8 (2.0%) (2.6%)
25-Sep-2015 145.4 1,931.3 0.7% (0.0%)
24-Sep-2015 144.4 1,932.2 0.5% (0.3%)
23-Sep-2015 143.7 1,938.8 (0.5%) (0.2%)
22-Sep-2015 144.4 1,942.7 (1.4%) (1.2%)
21-Sep-2015 146.5 1,967.0 1.4% 0.5%
18-Sep-2015 144.5 1,958.0 (2.5%) (1.6%)
17-Sep-2015 148.1 1,990.2 (0.2%) (0.3%)
16-Sep-2015 148.4 1,995.3 0.6% 0.9%
15-Sep-2015 147.5 1,978.1 1.3% 1.3%
14-Sep-2015 145.7 1,953.0 (1.2%) (0.4%)
11-Sep-2015 147.4 1,961.0 0.8% 0.4%
10-Sep-2015 146.2 1,952.3 0.8% 0.5%
09-Sep-2015 145.1 1,942.0 (1.5%) (1.4%)
08-Sep-2015 147.2 1,969.4 2.5% 2.5%
04-Sep-2015 143.7 1,921.2 (2.1%) (1.5%)
03-Sep-2015 146.8 1,951.1 1.2% 0.1%
02-Sep-2015 145.1 1,948.9 1.7% 1.8%
01-Sep-2015 142.7 1,913.9 (3.5%) (3.0%)

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31-Aug-2015 147.9 1,972.2 (0.1%) (0.8%)

28-Aug-2015 148.0 1,988.9 (0.4%) 0.1%
27-Aug-2015 148.5 1,987.7 1.3% 2.4%
26-Aug-2015 146.7 1,940.5 4.1% 3.9%
25-Aug-2015 141.0 1,867.6 (1.7%) (1.4%)
24-Aug-2015 143.5 1,893.2 (3.6%) (3.9%)
21-Aug-2015 148.9 1,970.9 (2.5%) (3.2%)
20-Aug-2015 152.7 2,035.7 (0.8%) (2.1%)
19-Aug-2015 153.9 2,079.6 (1.3%) (0.8%)
18-Aug-2015 156.0 2,096.9 (0.2%) (0.3%)
17-Aug-2015 156.3 2,102.4 0.4% 0.5%
14-Aug-2015 155.8 2,091.5 0.4% 0.4%
13-Aug-2015 155.1 2,083.4 (0.7%) (0.1%)
12-Aug-2015 156.2 2,086.0 0.4% 0.1%
11-Aug-2015 155.5 2,084.1 (0.8%) (1.0%)
10-Aug-2015 156.8 2,104.2 1.1% 1.3%
07-Aug-2015 155.1 2,077.6 (0.8%) (0.3%)
06-Aug-2015 156.3 2,083.6 (1.0%) (0.8%)
05-Aug-2015 157.9 2,099.8 0.2% 0.3%
04-Aug-2015 157.6 2,093.3 (0.7%) (0.2%)
03-Aug-2015 158.7 2,098.0 (2.0%) (0.3%)
31-Jul-2015 162.0 2,103.8 0.6% (0.2%)
30-Jul-2015 161.0 2,108.6 (0.1%) 0.0%
29-Jul-2015 161.1 2,108.6 0.6% 0.7%
28-Jul-2015 160.1 2,093.3 0.6% 1.2%
27-Jul-2015 159.1 2,067.6 (0.4%) (0.6%)
24-Jul-2015 159.8 2,079.6 (1.2%) (1.1%)
23-Jul-2015 161.7 2,102.1 0.9% (0.6%)
22-Jul-2015 160.4 2,114.2 (1.7%) (0.2%)
21-Jul-2015 163.1 2,119.2 (5.9%) (0.4%)
20-Jul-2015 173.2 2,128.3 0.4% 0.1%
17-Jul-2015 172.5 2,126.6 0.9% 0.1%

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16-Jul-2015 171.0 2,124.3 1.5% 0.8%

15-Jul-2015 168.5 2,107.4 (0.0%) (0.1%)
14-Jul-2015 168.6 2,109.0 (0.5%) 0.4%
13-Jul-2015 169.4 2,099.6 1.5% 1.1%
10-Jul-2015 167.0 2,076.6 1.9% 1.2%
09-Jul-2015 163.9 2,051.3 0.4% 0.2%
08-Jul-2015 163.2 2,046.7 (1.1%) (1.7%)
07-Jul-2015 165.0 2,081.3 0.2% 0.6%
06-Jul-2015 164.7 2,068.8 (0.2%) (0.4%)
02-Jul-2015 165.1 2,076.8 0.4% (0.0%)
01-Jul-2015 164.5 2,077.4 1.1% 0.7%
30-Jun-2015 162.7 2,063.1 (0.2%) 0.3%
29-Jun-2015 163.0 2,057.6 (1.5%) (2.1%)
26-Jun-2015 165.5 2,101.5 (0.4%) (0.0%)
25-Jun-2015 166.1 2,102.3 (0.5%) (0.3%)
24-Jun-2015 167.0 2,108.6 (1.0%) (0.7%)
23-Jun-2015 168.6 2,124.2 0.5% 0.1%
22-Jun-2015 167.7 2,122.8 0.4% 0.6%
19-Jun-2015 167.0 2,110.0 (0.7%) (0.5%)
18-Jun-2015 168.3 2,121.2 0.6% 1.0%
17-Jun-2015 167.2 2,100.4 0.2% 0.2%
16-Jun-2015 166.8 2,096.3 0.3% 0.6%
15-Jun-2015 166.3 2,084.4 (0.4%) (0.5%)
12-Jun-2015 167.0 2,094.1 (1.1%) (0.7%)
11-Jun-2015 168.8 2,108.9 (0.1%) 0.2%
10-Jun-2015 168.9 2,105.2 2.0% 1.2%
09-Jun-2015 165.7 2,080.2 0.2% 0.0%
08-Jun-2015 165.3 2,079.3 (1.2%) (0.6%)
05-Jun-2015 167.4 2,092.8 (0.6%) (0.1%)
04-Jun-2015 168.4 2,095.8 (0.9%) (0.9%)
03-Jun-2015 169.9 2,114.1 0.2% 0.2%
02-Jun-2015 169.7 2,109.6 (0.3%) (0.1%)

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01-Jun-2015 170.2 2,111.7 0.3% 0.2%

29-May-2015 169.7 2,107.4 (1.2%) (0.6%)
28-May-2015 171.7 2,120.8 (0.2%) (0.1%)
27-May-2015 172.0 2,123.5 1.1% 0.9%
26-May-2015 170.1 2,104.2 (1.2%) (1.0%)
22-May-2015 172.2 2,126.1 (0.6%) (0.2%)
21-May-2015 173.3 2,130.8 (0.2%) 0.2%
20-May-2015 173.8 2,125.8 0.2% (0.1%)
19-May-2015 173.5 2,127.8 0.2% (0.1%)
18-May-2015 173.1 2,129.2 (0.1%) 0.3%
15-May-2015 173.3 2,122.7 (0.5%) 0.1%
14-May-2015 174.1 2,121.1 1.0% 1.1%
13-May-2015 172.3 2,098.5 1.0% (0.0%)
12-May-2015 170.6 2,099.1 (0.3%) (0.3%)
11-May-2015 171.1 2,105.3 (0.9%) (0.5%)
08-May-2015 172.7 2,116.1 1.0% 1.3%
07-May-2015 171.0 2,088.0 0.6% 0.4%
06-May-2015 170.1 2,080.1 (1.8%) (0.4%)
05-May-2015 173.1 2,089.5 (0.5%) (1.2%)
04-May-2015 174.0 2,114.5 0.2% 0.3%
01-May-2015 173.7 2,108.3

End

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Unlevered Beta *(1+(1-Tax rate)*(D/E))

=Levered Beta /(1+(1-Tax rate)*(D/E))

Unlevered Beta *(1+(1-Tax rate)*(D/E))

=Levered Beta /(1+(1-Tax rate)*(D/E))

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Unlevered Beta *(1+(1-Tax rate)*(D/E))

=Levered Beta /(1+(1-Tax rate)*(D/E))

o to "Excel options" and go to the add-ins tab.

Whre it says "Manage" choose Excel Add-ins and click Go.
the box that appear, tick "Analysis tool pak".
o to "data analysis" on the data ribbon.
the box that appears click on regression and click ok.
Where it says "input Y range" select the cells giving the IBM percentage returns
Where it says "input X range" select the cells giving the SPX percentage returns
ck box to show graph or "line fit plots"
dd trendline by right clicking on the orange predicted plots on the graph (they should be in a straight line), and click "add trendline". Or click on the graph, go to the design ribbon, add chart e
nce a trendline is added, on the right hand side of the screen "trendline options" appears. Click on "display equation on chart".
ou can now see the beta as 0.9103

2016 Page 17 of 29
 365055740.xlsx
Workout

o the design ribbon, add chart element, add trendline

2016 Page 18 of 29
 SUMMARY OUTPUT

Regression Statistics
Multiple R 0.7
R Square 0.4
Adjusted R 0.4
Standard Er 0.0
Observatio 253.0

ANOVA f(x)
df SS MS F Significance F
Regression 1.0 0.0 0.0 196.1 0.0
Residual 251.0 0.0 0.0
Total 252.0 0.1

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept (0.0) 0.0 (1.0) 0.3 (0.0) 0.0 (0.0) 0.0 (5.0%) (4.0%)
X Variable 0.9 0.1 14.0 0.0 0.8 1.0 0.8 1.0

Y
RESIDUAL OUTPUT

ObservationPredicted Y Residuals
1.0 (0.0) (0.0)
2.0 0.0 (0.0)
3.0 (0.0) (0.0)
4.0 (0.0) (0.0)
5.0 0.0 0.0
6.0 0.0 0.0
7.0 (0.0) 0.0
8.0 (0.0) (0.0)
9.0 (0.0) 0.0
10.0 0.0 0.0
11.0 0.0 (0.1)
12.0 0.0 0.0
13.0 (0.0) 0.0
14.0 (0.0) 0.0
15.0 0.0 0.0
16.0 0.0 (0.0)
17.0 (0.0) 0.0
18.0 0.0 0.0
19.0 (0.0) (0.0)
20.0 0.0 (0.0)
21.0 (0.0) (0.0)
22.0 (0.0) 0.0
23.0 0.0 0.0
24.0 (0.0) 0.0
25.0 0.0 (0.0)
26.0 0.0 (0.0)
27.0 (0.0) 0.0
28.0 (0.0) 0.0
29.0 (0.0) (0.0)
30.0 (0.0) (0.0)
31.0 0.0 0.0
32.0 0.0 (0.0)
33.0 0.0 0.0
34.0 0.0 0.0
35.0 (0.0) 0.0
36.0 (0.0) 0.0
37.0 0.0 0.0
38.0 (0.0) (0.0)
39.0 0.0 0.0
40.0 (0.0) 0.0
41.0 0.0 0.0
42.0 0.0 (0.0)
43.0 0.0 0.0
44.0 0.0 0.0
45.0 0.0 0.0
46.0 (0.0) 0.0
47.0 (0.0) (0.0)
48.0 0.0 0.0
49.0 0.0 (0.0)
50.0 (0.0) 0.0
51.0 0.0 (0.0)
52.0 (0.0) 0.0
53.0 (0.0) 0.1
54.0 0.0 0.0
55.0 0.0 (0.0)
56.0 0.0 0.0
57.0 (0.0) (0.0)
58.0 (0.0) (0.0)
59.0 (0.0) (0.0)
60.0 (0.0) 0.0
61.0 (0.0) 0.0
62.0 0.0 0.0
63.0 0.0 0.0
64.0 (0.0) 0.0
65.0 (0.0) 0.0
66.0 0.0 (0.0)
 67.0 0.0 0.0
68.0 (0.0) (0.0)
69.0 0.0 (0.0)
70.0 (0.0) 0.0
71.0 0.0 (0.0)
72.0 0.0 0.0
73.0 (0.0) (0.0)
74.0 (0.0) (0.0)
75.0 (0.0) (0.0)
76.0 0.0 (0.0)
77.0 (0.0) 0.0
78.0 0.0 (0.0)
79.0 0.0 0.0
80.0 (0.0) 0.0
81.0 (0.0) 0.0
82.0 (0.0) 0.0
83.0 0.0 (0.0)
84.0 (0.0) 0.0
85.0 (0.0) (0.0)
86.0 (0.0) 0.0
87.0 0.0 0.0
88.0 (0.0) (0.0)
89.0 (0.0) 0.0
90.0 0.0 (0.0)
91.0 0.0 0.0
92.0 0.0 (0.0)
93.0 (0.0) 0.0
94.0 (0.0) (0.0)
95.0 0.0 (0.0)
96.0 0.0 0.0
97.0 0.0 0.0
98.0 (0.0) 0.0
99.0 0.0 (0.0)
100.0 (0.0) (0.0)
101.0 (0.0) (0.0)
102.0 (0.0) 0.0
103.0 0.0 (0.0)
104.0 (0.0) 0.0
105.0 (0.0) (0.0)
106.0 0.0 0.0
107.0 (0.0) 0.0
108.0 (0.0) 0.0
109.0 (0.0) (0.0)
110.0 0.0 0.0
111.0 (0.0) 0.0
112.0 0.0 0.0
113.0 (0.0) 0.0
114.0 0.0 0.0
115.0 (0.0) 0.0
116.0 0.0 0.0
117.0 (0.0) 0.0
118.0 (0.0) (0.0)
119.0 (0.0) 0.0
120.0 0.0 0.0
121.0 (0.0) (0.0)
122.0 (0.0) (0.0)
123.0 (0.0) (0.0)
124.0 (0.0) 0.0
125.0 0.0 0.0
126.0 0.0 (0.0)
127.0 (0.0) 0.0
128.0 (0.0) (0.0)
129.0 0.0 0.0
130.0 (0.0) (0.0)
131.0 (0.0) (0.0)
132.0 0.0 (0.0)
133.0 0.0 0.0
134.0 (0.0) 0.0
135.0 (0.0) (0.1)
136.0 (0.0) (0.0)
137.0 0.0 (0.0)
138.0 0.0 (0.0)
139.0 (0.0) 0.0
140.0 (0.0) (0.0)
141.0 0.0 (0.0)
142.0 0.0 0.0
143.0 0.0 0.0
144.0 0.0 0.0
145.0 (0.0) 0.0
146.0 0.0 0.0
147.0 0.0 (0.0)
148.0 0.0 (0.0)
149.0 0.0 0.0
150.0 0.0 (0.0)
151.0 (0.0) 0.0
152.0 (0.0) 0.0
153.0 (0.0) 0.0
154.0 (0.0) (0.0)
155.0 (0.0) (0.0)
156.0 0.0 0.0
157.0 (0.0) (0.0)
158.0 (0.0) 0.0
159.0 0.0 (0.0)
160.0 0.0 0.0
161.0 (0.0) (0.0)
162.0 0.0 0.0
163.0 0.0 0.0
164.0 (0.0) (0.0)
165.0 0.0 0.0
166.0 (0.0) (0.0)
167.0 0.0 0.0
168.0 0.0 0.0
169.0 (0.0) (0.0)
170.0 (0.0) 0.0
171.0 (0.0) (0.0)
172.0 0.0 (0.0)
173.0 0.0 0.0
174.0 (0.0) (0.0)
175.0 (0.0) 0.0
176.0 (0.0) 0.0
177.0 (0.0) 0.0
178.0 (0.0) (0.0)
179.0 (0.0) 0.0
180.0 0.0 (0.0)
181.0 0.0 0.0
182.0 (0.0) (0.0)
183.0 0.0 0.0
184.0 (0.0) 0.0
185.0 0.0 (0.0)
186.0 (0.0) (0.0)
187.0 (0.0) (0.0)
188.0 0.0 (0.0)
189.0 (0.0) (0.0)
190.0 (0.0) (0.0)
191.0 (0.0) 0.0
192.0 (0.0) (0.0)
193.0 0.0 0.0
194.0 0.0 (0.0)
195.0 (0.0) 0.0
196.0 (0.0) (0.0)
197.0 (0.0) 0.0
198.0 (0.0) (0.0)
199.0 (0.0) (0.1)
200.0 0.0 0.0
201.0 0.0 0.0
202.0 0.0 0.0
203.0 (0.0) 0.0
204.0 0.0 (0.0)
205.0 0.0 0.0
206.0 0.0 0.0
207.0 0.0 0.0
208.0 (0.0) 0.0
209.0 0.0 (0.0)
210.0 (0.0) 0.0
211.0 (0.0) 0.0
212.0 0.0 0.0
213.0 0.0 (0.0)
214.0 (0.0) 0.0
215.0 (0.0) (0.0)
216.0 (0.0) (0.0)
217.0 (0.0) (0.0)
218.0 (0.0) 0.0
219.0 0.0 (0.0)
220.0 (0.0) (0.0)
221.0 0.0 (0.0)
222.0 0.0 0.0
223.0 0.0 (0.0)
224.0 (0.0) 0.0
225.0 (0.0) (0.0)
226.0 0.0 (0.0)
227.0 0.0 0.0
228.0 (0.0) 0.0
229.0 (0.0) (0.0)
230.0 (0.0) (0.0)
231.0 (0.0) (0.0)
232.0 0.0 0.0
233.0 (0.0) (0.0)
234.0 0.0 0.0
235.0 (0.0) (0.0)
236.0 (0.0) 0.0
237.0 0.0 0.0
238.0 (0.0) (0.0)
239.0 (0.0) (0.0)
240.0 0.0 (0.0)
241.0 (0.0) 0.0
242.0 (0.0) 0.0
243.0 0.0 (0.0)
244.0 0.0 (0.0)
245.0 0.0 0.0
246.0 (0.0) 0.0
247.0 (0.0) 0.0
248.0 (0.0) (0.0)
249.0 0.0 (0.0)
250.0 0.0 0.0
251.0 (0.0) (0.0)
252.0 (0.0) 0.0
253.0 0.0 (0.0)
 X Variable 1 Line Fit Plot
6.0%

4.0%

f(x) = 0.9103338161x - 0.0006535787

2.0%

0.0%
Y
(5.0%) (4.0%) (3.0%) (2.0%) (1.0%) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Predicted Y
Y

Linear (Predicted Y)

(2.0%)

(4.0%)

(6.0%)

(8.0%)

X Variable 1
 Y
%
Predicted Y
Linear (Predicted Y)