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Global Corp. expects sales to grow by 9% next year. Assume that Global pays out 50% of its net income. Global developed the pro forma

Global Corp. expects sales to grow by 9% next year. Assume that Global pays out 50% of its net income. Global developed the pro forma financial statements given below. What is the amount of net new financing needed for Global? If the new financing must all be in the form of long-term debt, The amount of net new financing needed for Global is $________

Pro Forma Income Statement ($million) Pro Forma Balance Sheet ($million)
Sales 203.18 Assets
Costs Except Depreciation -190.54 Cash 24.09
EBITDA 12.64 Accounts Receivable 20.27
Depreciation and Amortization -1.31 Inventories 16.68
EBIT 11.33 Total Current Assets 61.04
Interest Expense (net) -2.1 Property, Plant, and Equipment 123.61
Pretax Income 9.23 Total Assets 184.65
Income Tax -2.31
Net Income 6.92 Liabilities and Equity
Accounts Payable 37.82
Long-term Debt 121.87
Total Liabilities 159.69
Stockholders' Equity 24.96
Total Liabilities and Equity 184.65

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