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1. For the constant growth method pro forma income statement shown, how do you calculate the interest for the second pass and the third pass?
1. For the constant growth method pro forma income statement shown, how do you calculate the interest for the second pass and the third pass? please explain how you figured it out.
Gainesville Surgical Center: Proforma Income Statement for 2004 (in thousands of dollars 2004 Projections 2003 Growth Rate First pass Second pass Third pass $45,000$45,000 $38,479$38,479 25% 25% 25% NIA $45,000 $38,479 $6,521 $1,017 $36,000 S30,783 6 Earnings before interest and taxes $5,217 $1,017 $4,200 $1,680 $2,520 $1,512 $1,008 4 Revenues 5 Operating costs Interest Earnings before taxes Taxes (40%) Net income Dividends (60%) Addition to retained earnings NIA 10 11 12 13
1. For the constant growth method pro forma income statement shown, how do you calculate the interest for the second pass and the third pass? please explain how you figured it out.
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