For this assignment option you will need to refer to the following documents: ABC Plumbing Corp. and Income/Balance sheet . Using the various ratios and assumptions project the stock price for the case study company and new issues of stock based on the statements. Be sure to include the following:

1. Incorporate and update the information given in Table 1 to reflect the changes for the upcoming year
2. Prepare the income statement and balance sheet for next year based on these assumptions: (a) cash, fixed assets, payables and accruals will grow with sales; (b) the current composition of interestbearing debts, which includes short-term bank loans and long term bonds, will be maintained for next year; (c) a tax rate of 40%; (d) 10% interest rate on all interest-bearing debts; (e) 50 million common shares outstanding
3. The current market price of ABC's common stocks is at $23.05. If all assumptions are realized, what is your estimate for ABC's stock a year from now based on today's P/E ratio?
4. If the growth rate of ABC next year is only 6%, but all other assumptions are maintained, what will ABC's stock price be? If this growth rate turns out to be a better-than-expected rate of 12%, how much will this stock be worth a year from now based on this model?