For the next fiscal year, you forecast net income of $50,300 and ending assets of $504,000. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $120,400. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,500. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The net financing required will be $ . (Round to the nearest dollar.) Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.1. 2013 $16,451 2014 $18,114 2015 $19,837 2016 $21,733 2017 $23,844 2018 $26,204 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The continuation value is $ thousand. (Round to the nearest integer.) For the next fiscal year, you forecast net income of $50,300 and ending assets of $504,000. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $120,400. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,500. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The net financing required will be $ . (Round to the nearest dollar.) Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.1. 2013 $16,451 2014 $18,114 2015 $19,837 2016 $21,733 2017 $23,844 2018 $26,204 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The continuation value is $ thousand. (Round to the nearest integer.)
