Last year, Lombardi Corporation had sales of $400 and ended the year with the balance sheet below. For this year, management forecasts sales of $480, net income of $24, and dividends of $12. Long-term debt and common stock are discretionary, the remaining accounts are spontaneous. Forecast Lombardi's external financing needed (EFN) for this year using the percentage-of-sales method. Cash $ 40 Accounts payable $ 60 Accounts receivable 100 Long-term debt Inventories 120 Common stock Plant and equipment 240 Retained earnings TOTAL ASSETS $ 500 TOTAL LIAB & EQUITY $ 500 200 120 120 a $64. b. $12 c. $76. d. $36. QUESTION 10 What is the real rate of interest from a Yeagley Corporation bond when the pure rate of interest is 4%, the inflation premium is 5%, and the risk premium is 7%? a, 9.20%. b. 16.84%. c. 11.2896 d. 12.35%. k Save and Submit to save and submit. Click Save All Answers to small andre When interest rates rise, the present value of fixed future cash flows: a. Increases b. Decreases. c. First rises, then falls. d. Remains the same. QUESTION 12 18%, the risk-free rate is 11%, and the beta of Loschert Corp. is 1.2, what is the required rate of retum If the expected return from the market on Loschert's stock? a. 11.00%. b. 13.20%. c. 19.4096. d. 8.40%