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Also assume the following when constructing the pro-forma balance sheet in part (b) of this question: (1) other current assets, intangible assets, and other current

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Also assume the following when constructing the pro-forma balance sheet in part (b) of this question: (1) other current assets, intangible assets, and other current liabilities remain constant; and (4] pro-forma short-term debt is calculated using the ratio of short-term debt to COGS in 2018 (similar to how you calculate pro-forma accounts payable). 3) b) d) Construct a pro-forma income statement for December 31, 2019 based on the optimistic assumption that sales will grow by 5.0 percent next year. Be clear about your work and assumptions. Construct a pro-forma balance sheet for December 31, 2019. Assume that the firm will buy another $6,000M in property, plant, and equipment. Also assume that a dividend of $12,000M will be paid out next year. If total assets is greater than total liabilities plus equity, correct this imbalance lie. the net funding need) by adding to long-term debt. If total assets is less than total liabilities plus equity, correct this imbalance by retiring long-term debt. Be clear about your work and assumptions and report how much you add to or subtract from long-term debt. What is the projected free cash flow (FCF) for December 31, 2019? Use the following equation to solve for FCF: FCF : OCF Capex ANWC, where OCF = Net Income + Interest + Depreciation + Amortization. Make sure to show the individual numbers used in this equation. The free cash flows are the cash flows available for distribution to the firm's investors {stockholders and bondholders). The free cash flow is the cash available to pay out to your investors (Le. your bondholders and stockholders). According to your pro-formas, how much do you plan to pay your investors in 2019? (This will be the Sum of interest and dividend payments.) By how much does this exceed the free cash flow you caICulated in part (c)? The present value of all future free cash flows for PFE represents the market value of assets for PFE. ASSume that the pro-forma free cash flow in 2019 will grow at 2 percent per year in perpetuity. Assume that the beta of assets for PFE is 0.45. Also assume a risk-free rate of 2.2 percent and a market risk premium of 5.0 percent. What is the market value of PFE assets

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