Bigquiz currently is an all-equity financed firm with the information given below. = Bigquiz Corporation (in millions) ($ millions) 2019 2020 sales 610 cost of goods sold 450 depreciation 100 interest rate 10.0% payout 50.0% tax rate 20.0% account receivable 26 cash 20 inventory 28 net fixed asset 300 345 account payable 20 25 note payable 0 0 long-term debt 100 150 common stock 60 60 retained earning 180 shares outstanding 10 Ba 1. A) How much is the cash and retained earning in 2020? B) Apply DuPont identity on ROE, how much is the operating contribution and how much is the financing contribution. C) How much is P/E and P/B ratio? D) If the firm targets a 30% growth rate in the next 3 years, but the firm doesn't want to issue new equity, what will be the firm's leverage ratio by the end of year 3? (suppose net profit margin, asset turnover ratio, payout ratio remain constant over the period). 2. Here are some addtional information. The company's beta is 1.5, risk free rate is 2% and market risk premium is 6%, what is WACC under market value based capital structure? (Hint, only long-term debt is interst bearing, and is considered as debt capital). Bigquiz currently is an all-equity financed firm with the information given below. = Bigquiz Corporation (in millions) ($ millions) 2019 2020 sales 610 cost of goods sold 450 depreciation 100 interest rate 10.0% payout 50.0% tax rate 20.0% account receivable 26 cash 20 inventory 28 net fixed asset 300 345 account payable 20 25 note payable 0 0 long-term debt 100 150 common stock 60 60 retained earning 180 shares outstanding 10 Ba 1. A) How much is the cash and retained earning in 2020? B) Apply DuPont identity on ROE, how much is the operating contribution and how much is the financing contribution. C) How much is P/E and P/B ratio? D) If the firm targets a 30% growth rate in the next 3 years, but the firm doesn't want to issue new equity, what will be the firm's leverage ratio by the end of year 3? (suppose net profit margin, asset turnover ratio, payout ratio remain constant over the period). 2. Here are some addtional information. The company's beta is 1.5, risk free rate is 2% and market risk premium is 6%, what is WACC under market value based capital structure? (Hint, only long-term debt is interst bearing, and is considered as debt capital)