1. Consider the following data.

I/S	2015		2016
Sales (S)	1,200		1,320 (+10%)
- Costs (C) (COGS & SG&A)	1,000
= EBITDA (=EBIT)	200
- Interest	20
=EBT	180
- Tax (T)	40
= NI	140
Dividend	40
Plowback	100
B/S
Assets (A)	2,000
Debt (D)	800
Equity (E)	1,200
Common stock (CS)	800
Retained earnings (RE)	400(+100)

From these data, calculate the following ratios, showing all work:

Margin (Cost) =

Turnover (TO) =

Interest Rate =

Tax Rate =

Leverage =

Assume that depreciation is included in Costs. Using these ratios, calculate the I/S and B/S for 2016.

Assume that the leverage remains constant (at 0.40).

Assume the common stock remains constant (at 800), that is no new common stock is issued.

1. Using these data, calculate the cash flow to be discounted (CF) for 2016.
2. Assuming that this CF increases by 10% per year indefinitely, what is the value of the company? (Use a discount rate (r) of 15%)
3. What is the dividend paid during 2016? What is the dividend yield? What is retained earnings (RE) at the end of 2016?