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Show the pro forma statements for 2022 if the company projects 5% and 15% growth for the year and if they do not want to
Show the pro forma statements for 2022 if the company projects 5% and 15% growth for the year and if they do not want to issue more than 100 in new stock. Assume the interest rate (10%), tax rate (50%), depreciation method (10 yr. Straight Line) and dividend pay out ratio remain the same.
1) Consider the following firm: Income Statement 2021 Sources and Uses of Funds 2021 Sources Uses Rev 2000 Op. Costs (1000) Depr. (500) EBIT 500 Int (200) Tax (150) Net 150 Net Depr. ABonds AStocks Tot s 150 500 100 125 875 ANWC 100 AFxd Asts 700 Div 75 Tot U 875 Balance Sheets: 2020 Assets NWC 1900 Fxd Assts 4800 2021 Assets NWC 2000 Fxd Assts 5000 Liabilities Debt 1900 Equity 4800 Liabilities Debt 2000 Equity 5000 Show the pro forma statements for 2022 if the company projects 5% and 15% growth for the year and if they do not want to issue more than 100 in new stock. Assume the interest rate (10%), tax rate (508), depreciation method (10 yr. Straight Line) and dividend pay out ratio remain the sameStep by Step Solution
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