Question
1) Consider the following firm: Income Statement 2022 Rev 2000 Sources and Uses of Funds 2022 Sources Uses Op. Costs (1000) Depr. (500) Net
1) Consider the following firm: Income Statement 2022 Rev 2000 Sources and Uses of Funds 2022 Sources Uses Op. Costs (1000) Depr. (500) Net 150 ANWC 100 EBIT 500 Depr. 500 AFxd Asts 700 Int (200) ABonds 100 Div 75 Tax (150) AStocks 125 Tot U 875 Net 150 Tot S 875 Balance Sheets: 2021 Assets NWC 1900 Fxd Assts 4800 Liabilities 2022 Assets NWC 2000 Fxd Assts 5000 Liabilities. Debt Equity 1900 4800 Debt Equity 2000 5000 Show the pro forma statements for 2023 if the company projects (5%) and 15% growth for the year and if they do not want to issue more than 100 in new stock. Assume the interest rate (10%), tax rate (50%), depreciation method (10 yr. Straight Line) and dividend pay out ratio remain the same.
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers
7th edition
72869461, 72467665, 9780072467666, 978-0072869460
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