Question
1. What is the pro-forma value for equity? (Round answer to 2 decimal places. Do not round intermediate calculations. Also, do not calculate the numbers
1. What is the pro-forma value for equity? (Round answer to 2 decimal places. Do not round intermediate calculations. Also, do not calculate the numbers given in the income statement and balance sheet, such as the Taxes and Net income. Take them as given.).
2. What is the external financing needed using the pro-forma approach? (Round answer to 2 decimal places. Do not round intermediate calculations. Also, do not calculate the numbers given in the income statement and balance sheet, such as the Taxes and Net income. Take them as given.).
3. What is the internal growth rate? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
4. What is the sustainable growth rate? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 2,961 Assets 172,178 Debt 48,642 31,777 Equity 123,536 Costs EBIT 21,184 Taxes @ 38% 8050 Total 172,178 Total 172,178 Net Income 13,134 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,109 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to grow by 27%Step by Step Solution
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