Question
I am including the correct answer to the following problem. However, doing the work I cannot get the same answer. I am off just by
I am including the correct answer to the following problem. However, doing the work I cannot get the same answer. I am off just by a couple decimal points but I still cannot find the error in my work. I would really appreciate it if someone can get the same answer and show me the process. Thank you in advance!
Consider the following recent financials for a Corporation:
Income Statement | Balance Sheet | ||||
Sales | 72,429 | Assets | 178,884 | Debt | 44,955 |
Costs | 43,457 | Equity | 133,929 | ||
EBIT | 28,972 | ||||
Taxes @ 38% | 11,009 | Total | 178,884 | Total | 178,884 |
Net Income | 17,963 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,577 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to grow by 24%.
What is the external financing needed using the pro-forma approach?
23,853.90
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