1. The most recent financial statements for ABC, Inc. are shown here: Income Statement Balance Sheet Current assets Fixed assets Sales Costs Taxable income Taxes (35%) Net income 4.800 3.840 960 336 624 6,084 Current Liabilities 5.183 Long-term debt Equity Retained earning 11262 Total 1,244 2,487 7,036 500 1.262 Total The company is running at full capacity and the company maintains a constant 50 percent dividend payout ratio. Like every other firm in its industry, next year's sales are projected to increase by exactly 12 percent. What is the external financing needed (EFN) and plug variable options to adjust this EFN? 3. You are considering a new product launch. Thus far, you have determined that an OCF of SAR 1.5 m will result in a zero net present value for the project, which is the minimum requirement for project acceptance. You have computed its fixed costs to be SAR 550 per unit for annual sales of 1,800 units. The price per unit will be $2,400 and variable cost per unit will be $1,200. You feel that it can realistically capture 2.25 percent of the 110,000 unit market for this product. The tax rate is 34 percent and the required rate of return is 11 percent. Should the company develop the new product? Why or why not? 4. Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment costs $1.2 million has a 7-year life, and will be worthless after the 7 years. The pre-tax cost of borrowed funds is 8 percent and the tax rate is 32 percent. The equipment can be leased for $242,500 a year. What is the net advantage to leasing and what will be the decision to buy or lease