Intro

Below are the balance sheet and income statement for Square Chair Pasta, actual

for $2023$ and expected for $2024.$ All numbers are $in$ $ million.

Part $1$

What $is$ the expected value $of$ net foxed assets $if$ the company wants $to$ invest $(net$

$of$ any sales$)$ $$76in$ foxed assets $in2024(in$ $ million$)?$

Previous answers: $223$; $224$; $223$;

Part $2$

What $is$ the expected value $of$ equity $if$ the company does not sell $or$ repurchase

any shares and the dividend payout ratio $is80\%(in$ $ milion$)?$

Correct $\sqrt[\phantom{2}]{?}$

Retention rate:

$R=1-0\mathrm{.}8=0\mathrm{.}2$

Addition $to$ retained earnings:

$E=R*$ Net income $=0\mathrm{.}2*19=3\mathrm{.}8$

Expected equity:

$E(E_1)=E_0+E=63+3\mathrm{.}8=66\mathrm{.}8(million)$

Part $3$

What $is$ the external funding required $(EFR)$ for next year $(in$ $ million$)?$

for the part $1,$ answer $223,224$ are wrong $m$ for the part $3$ answers $74\mathrm{.}375\mathrm{.}2is$ wrong