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Current Assets Net Fixed Assets Magical Kingdom Corporation 2018 Balance Sheet ($ in millions) $2,260 Current Liability $719 Debt Shareholders' Equity $2.979 $1.000 $1.428 $551
Current Assets Net Fixed Assets Magical Kingdom Corporation 2018 Balance Sheet ($ in millions) $2,260 Current Liability $719 Debt Shareholders' Equity $2.979 $1.000 $1.428 $551 $2.979 Total Magical Kingdom Corporation 2018 Income Statement($ in millions) Net Sales Cost of Good Sold Depreciation Earning Before Interest and Taxes Interest Paid Taxable income Taxes(30%) Net Income Dividends (25%) Addition to the Retained Earning $600 $300 $150 $150 $30 $120 $36 $84 $21 $63 Interest expense and depreciation will remain constant. The tax rate and dividend payout rate will also remain constant. Cost, current assets, fixed assets and current liabilities will increase proportionally with sales but long term debt and equity do not increase proportionally. If the firm is operating at full capacity and no new debt or equity is issued, what will be the EFN needed to support the 17% growth rate in sales
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