ments Sales Operating Costa Depreciation EBIT Interest EBT TAXES (4055) Net Income Dividends Paid Out $40,000,000.00 $25,000,000.00 $1,500,000.00 $12.500,000.00 -$280,000.00 $12,220,000.00 54.880,000.00 $7,332,000.00 $2.932.800.00 Perences Assets Cash Accounts Receivable Inventories Current Assets Gros Plant & Equipment Less: Depreciation Net Pant & Equipment Total Assets Yearo $4,000,000.00 $12,000,000.00 $18,000,000.00 $32.000.000.00 $15.000.000.00 $6.000.000.00 $9.000.000,00 $41,000,000.00 .. biles & Equity YO Accounts Payable $10,000,000.00 Notes Payable $1,500,000.00 Accruals $4,000,000.00 Current Liabilities $15,500,000.00 Long-Term Debt $2,000,000,00 Common Stock $19.800,000.00 Retained Earnings $3.700.000,00 Total Liabilities & Equity $41.000.000.00 Now make the following assumptions Bales are expected to increase by 20 percent in Year Operating costs are expected to incite to 740 oceno sales Fixed assets are being used at 80 percent of capacity Fixed assets are lumpy. If the firm must add focussets.modapun or $2.000.000 Foco assets are currently being deprecated on a straight linebab ovora 10-year period New Todasis will be deprecated on a straight line basis over 10 years . Al current sets and spontaneous abilities can be expressed as a percort of sales and will grow proportionately with sales ALU Start of the coming year notes payable we expected to decrease to 51.000.000, Long Iorm debt will increase to $3.000.000 The before tax interest rate on notes payable and long-term debt is currently a percent. Over the coming year it will remain as for the long-term debt. but will increase to 12% for the notes payable The tax rate will remain at 40 percent The firm will increase its dividend payout rate from 40 percent to 50 percent of net income in You 1. regardless of whether any new equity is issued The firm has decided that any additional funds needed (AFN will be raised by suling new corrmon stock Using the spreadsheet method and given the information above, de a first pass and calculate the additional funds needed then do a second pass assuming that all funds are raised by the issuance of now.connon stock. Now assume that after stock is issued by the end of the coming you there will be 650.000 shares of stock outstanding. Given this information determine what the retoman cuity / Equity is expected to be Enter your awerin decimal formal truncated to a decimal places. For example, your awer Income Statement Sales Operuang Costs Depreciation EBIT Interest EBT Taxes (40%) Net Income Dividends Pald Out Year o $40,000,000.00 $20,000,000.00 $1,000,000.00 $12,000,000.00 -$280,000.00 $12,220,000.00 $1,688,000.00 37.332.000.00 $2,032,800.00 Antes Cash Accounts Receivable Inventories Current Assets Grom Plant & Equipment Less: Depreciation Net Plant & Equipment Tot Assets Year o $4,000,000.00 $12,000,000.00 $18,000,000.00 $32.000.000,00 $15,000,000.00 $6,000,000.00 $9,000,000.00 $41,000,000.00 Utilis & Equity Accounts Payable Nolos Payable Accruals Current Liabilities Long-Term Debt Common Stock Retained Earnings Total Liabilities & Equity Yeuro $10,000,000.00 $1,500,000.00 $1,000,000.00 $15,000,000.00 $2,000,000.00 $19,800,000.00 $3,700,000.00 $41,000,000.00 . Now make the following assumptions Sales are expected to increase by 20 percent in Year 1 Operating costs are expected to increase to 740 percent of sales . Fixed assets are being used at 80 percent of capacity Fixed assets are lumpy. If the form must add fixed assets, it must add alum-sum of $2.000.000 Fuod assets are currently being deprecated on a straight line basis over a 10 year period. Now faxed assets will also be deprecated on a straight line basis over 10 years All current assets and spontaneous abilities can be expressed as a percent of sales and will grow proportionately with sales . At the start of the comine year, notos payable are expected to decrease to $1.000.000. Long- term debt will increase to $3.000.000 The bofore-Lax interest rate on notes payable and long-term cbt is currently a percent. Over the coming year will remain at 8% for the long-term debt but will increase to 12% for the notes payable The Lax rate will remain at 40 percent The firm will increase its dividend payout rate from 40 percent to 50 percent of net income in Year 1. regardless of whether any new equity is issued. The fem has decided that any additional funds needed (AFN) will be raised by issuing new Connon stock. Using the spreadsheet method, and given the information above, do a first pass and calculate the additional funds needed, then do a second pass, assuming that all funds are raised by the issuance of new common stock. Now assume that after stock issued by the end of the coming year there will be 650.000 shares of stock outstanding. Given this information determine what the return on equity (N/Equity) is expected to be Enter your answer in decimal format, nuncated to 3 decimal places. For example, if your anwer is 3279cnter 0.327 ments Sales Operating Costa Depreciation EBIT Interest EBT TAXES (4055) Net Income Dividends Paid Out $40,000,000.00 $25,000,000.00 $1,500,000.00 $12.500,000.00 -$280,000.00 $12,220,000.00 54.880,000.00 $7,332,000.00 $2.932.800.00 Perences Assets Cash Accounts Receivable Inventories Current Assets Gros Plant & Equipment Less: Depreciation Net Pant & Equipment Total Assets Yearo $4,000,000.00 $12,000,000.00 $18,000,000.00 $32.000.000.00 $15.000.000.00 $6.000.000.00 $9.000.000,00 $41,000,000.00 .. biles & Equity YO Accounts Payable $10,000,000.00 Notes Payable $1,500,000.00 Accruals $4,000,000.00 Current Liabilities $15,500,000.00 Long-Term Debt $2,000,000,00 Common Stock $19.800,000.00 Retained Earnings $3.700.000,00 Total Liabilities & Equity $41.000.000.00 Now make the following assumptions Bales are expected to increase by 20 percent in Year Operating costs are expected to incite to 740 oceno sales Fixed assets are being used at 80 percent of capacity Fixed assets are lumpy. If the firm must add focussets.modapun or $2.000.000 Foco assets are currently being deprecated on a straight linebab ovora 10-year period New Todasis will be deprecated on a straight line basis over 10 years . Al current sets and spontaneous abilities can be expressed as a percort of sales and will grow proportionately with sales ALU Start of the coming year notes payable we expected to decrease to 51.000.000, Long Iorm debt will increase to $3.000.000 The before tax interest rate on notes payable and long-term debt is currently a percent. Over the coming year it will remain as for the long-term debt. but will increase to 12% for the notes payable The tax rate will remain at 40 percent The firm will increase its dividend payout rate from 40 percent to 50 percent of net income in You 1. regardless of whether any new equity is issued The firm has decided that any additional funds needed (AFN will be raised by suling new corrmon stock Using the spreadsheet method and given the information above, de a first pass and calculate the additional funds needed then do a second pass assuming that all funds are raised by the issuance of now.connon stock. Now assume that after stock is issued by the end of the coming you there will be 650.000 shares of stock outstanding. Given this information determine what the retoman cuity / Equity is expected to be Enter your awerin decimal formal truncated to a decimal places. For example, your awer Income Statement Sales Operuang Costs Depreciation EBIT Interest EBT Taxes (40%) Net Income Dividends Pald Out Year o $40,000,000.00 $20,000,000.00 $1,000,000.00 $12,000,000.00 -$280,000.00 $12,220,000.00 $1,688,000.00 37.332.000.00 $2,032,800.00 Antes Cash Accounts Receivable Inventories Current Assets Grom Plant & Equipment Less: Depreciation Net Plant & Equipment Tot Assets Year o $4,000,000.00 $12,000,000.00 $18,000,000.00 $32.000.000,00 $15,000,000.00 $6,000,000.00 $9,000,000.00 $41,000,000.00 Utilis & Equity Accounts Payable Nolos Payable Accruals Current Liabilities Long-Term Debt Common Stock Retained Earnings Total Liabilities & Equity Yeuro $10,000,000.00 $1,500,000.00 $1,000,000.00 $15,000,000.00 $2,000,000.00 $19,800,000.00 $3,700,000.00 $41,000,000.00 . Now make the following assumptions Sales are expected to increase by 20 percent in Year 1 Operating costs are expected to increase to 740 percent of sales . Fixed assets are being used at 80 percent of capacity Fixed assets are lumpy. If the form must add fixed assets, it must add alum-sum of $2.000.000 Fuod assets are currently being deprecated on a straight line basis over a 10 year period. Now faxed assets will also be deprecated on a straight line basis over 10 years All current assets and spontaneous abilities can be expressed as a percent of sales and will grow proportionately with sales . At the start of the comine year, notos payable are expected to decrease to $1.000.000. Long- term debt will increase to $3.000.000 The bofore-Lax interest rate on notes payable and long-term cbt is currently a percent. Over the coming year will remain at 8% for the long-term debt but will increase to 12% for the notes payable The Lax rate will remain at 40 percent The firm will increase its dividend payout rate from 40 percent to 50 percent of net income in Year 1. regardless of whether any new equity is issued. The fem has decided that any additional funds needed (AFN) will be raised by issuing new Connon stock. Using the spreadsheet method, and given the information above, do a first pass and calculate the additional funds needed, then do a second pass, assuming that all funds are raised by the issuance of new common stock. Now assume that after stock issued by the end of the coming year there will be 650.000 shares of stock outstanding. Given this information determine what the return on equity (N/Equity) is expected to be Enter your answer in decimal format, nuncated to 3 decimal places. For example, if your anwer is 3279cnter 0.327