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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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