Question
Question: I need this completed tonight 8/30 to the morning of 8/31. Its a pretty quick question! Thx. 1. Consider the following financials for XYZ
Question:
I need this completed tonight 8/30 to the morning of 8/31. Its a pretty quick question! Thx.
1.
Consider the following financials for XYZ Corporation:
Income Statement | Balance Sheet | ||||
Sales | 49275 | Assets | 127226 | Debt | 41133 |
Costs | 29565 | Equity | 86093 | ||
EBIT | 19710 | ||||
Taxes @ 38% | 7490 | Total | 127226 | Total | 127226 |
Net Income | 12220 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3916 was paid and the company wishesto maintain a constant payout ratio. Next year's sales are projected to grow by 23%. What is the pro-forma value for equity? What is theexternal financing needed using the pro-forma approach? What are the internal and sustainable growth rates?(Round intermediate calculations to 5 decimal places. Round final answer to 2 decimal places for dollar amounts and 4 decimal places for growth rates).
Pro-Forma Equity
External Financing Needed
Internal Growth Rate
Sustainable Growth Rate
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