a$.$ Assume that the company was operating at full capacity in $2021$ with regard to all items

except fixed assets, which in $2021$ were being utilized to only $90\%$ of capacity. By what

percentage could $2022$ sales increase over $2021$ sales without the need for an increase in fixed

assets

b$.$ Suppose that in $2022,$ sales increase by $25\%$ over $2021$ sales. The firm expects to maintain

its $2021$ dividend payout ratio and if its $2022$ forecasted sales is greater than the capacity

sales, it need to add more fixed assets. The firm believes that its current assets and operating

liabilities should grow at the same rate as sales. However, it would like to reduce its operating

$$

the end of $2022,$ and it forecasts that the interest rate on all $2022$ forecasted income statement and

Portogee Inc has a tax rate of $40\%.$ Construct the $2022$ from question a above. How much

balance sheet for Portogee using all information here and from

additional external capital $($AFN$)$ will be required? $($Hins$.$ Base any new debt is added at

expense on the amount of debt at the beginning of the year, because any new debr is added at

the end of the year.$)$

c$.$ Forecast the $2022$ free cash flow and the $2022$ dividend per share $($Note: present your

calculations$).$

d$.$ Assume that it is now January $1,2022,$ the forecasted FCF for $2022$ is $$2,900$ thousand, and

this FCF is expected to grow at $27\%$ for $2023$ and $25\%$ for $2024,$ afterward FCFs are expected

to grow at a constant rate of $6\%$ indefinitely. The company's WACC is $12\mathrm{.}4\%,$ and

stockholders require a return of $14\mathrm{.}5\%$ on Portogee's stock. Calculate the firm value and the

stock price today using the corporate value model.

e$.$ Assume that it is now January $1,2022,$ the forecasted $2022$ dividend per share $($DPS$)$ is $$1\mathrm{.}9,$

and this DPS is expected to grow at $16\%$ for $2023$ and $8\%$ for $2024,$ afterward dividends are

expected to grow at a constant rate of $6\%$ indefinitely. The company's WACC is $12\mathrm{.}4\%,$ and

stockholders require a return of $14\mathrm{.}5\%$ on Portogee's stock. Calculate the stock price today

using the dividend discount model.

THE END

Lecturer

To Thi Thanh Truc