Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help finding what to put in these yellow boxes the green ones are 100 percent right though. Here is the information given, and
I need help finding what to put in these yellow boxes the green ones are 100 percent right though.
Here is the information given, and the depreciation is not 40000 and the interest is not 60000 for some reason I do not know.
Pro-Forma Statements \begin{tabular}{|l|c|c|c|} \hline Year & 1 & 2 & 3 \\ \hline Sales & 389000 & & \\ \hline Cost & & 100000 & \\ \hline Depreciation \\ \hline EBIT \\ \hline Interest \\ \hline Taxable Income \\ \hline Taxes \\ \hline Net Income \\ \hline Accumulated Depreciation at the end of year 4 & & & \\ \hline Book Value of the Project in Year 4 & & & \\ \hline Salvage Value Net Of Tax & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Project Information } & \multicolumn{2}{|l|}{ Stock Information } & \multicolumn{2}{|c|}{ Bond Information } & Cor \\ \hline MV of Land & 100,000 & Shares of common stock outstanding & 620,000 & Bond 1 & & \\ \hline Engineer Cost & 15,000 & Price per share & 75.39 & Face Value & 67,000,000 & \\ \hline Factory cost & 776,000 & Book Value per share & 6.95 & Coupon Rate & 5% & \\ \hline Annual Sales & 439,000 & Most Recent Dividend & 2.60 & Matures in & 10 years & \\ \hline Decrease in Sales of Existing Product & 50,000 & Dividend Growth rate & 0.07 & Sells for & 83% of Par & \\ \hline Annual Cost & 100,000 & Risk Free Rate & 3% & & & \\ \hline Depreciated Streaight line to & 200,000 over 5 years & Beta & 1.2 & Bond 2 & & \\ \hline MV at the end & 138,000 & Return of the Market & 10% & Face Value & 64,000,000 & \\ \hline Bond Interest & 60,000 per year & Premium over WACC for Riskeir Projects & 2% & Coupon Rate & 6% & \\ \hline Investment in inventory in year 0 & 71,000 & & & Matures in & 20 years & \\ \hline Investment in inventory in succeeding years & 11,100 & & & Sells for & 92% of Par & \\ \hline Tax rate & 35% & Cost of Equity (Dividend Growth Model) & 0.1069 & & & \\ \hline \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started