Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditing Pocket Guide Preparing Performing Reporting And Follow Up

Authors: J.P. Russell

2nd Edition

1636941303, 978-1636941301

More Books

Students also viewed these Accounting questions