Question
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087 Debt 38,278 Costs 44,281 Equity 170,809 EBIT 29,521 Taxes
Consider the following recent financials for XYZ Corporation:
Income Statement | Balance Sheet | ||||
Sales | 73,802 | Assets | 209,087 | Debt | 38,278 |
Costs | 44,281 |
|
| Equity | 170,809 |
EBIT | 29,521 |
|
|
|
|
Taxes @ 38% | 11,218 | Total | 209,087 | Total | 209,087 |
Net Income | 18,303 |
|
|
|
|
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,907 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to grow by 25%.
What is the pro-forma value for equity? (Round answer to 2 decimal places. Do not round intermediate calculations).
What is the external financing needed using the pro-forma approach? (Round answer to 2 decimal places. Do not round intermediate calculations).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started