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Start with the partial model in the file Ch 1 2 P 1 0 Build a Model.xlsx on the textbook s Web site, which contains
Start with the partial model in the file Ch P Build a Model.xlsx on the textbooks Web site, which contains the financial statements of Zieber Corporation. Forecast Zeiber's income statement and balance sheets. Use the following assumptions: Sales grow by The ratios of expenses to sales, depreciation to fixed assets, cash to sales, accounts receivable to sales, and inventories to sales will be the same in as in Zeiber will not issue any new stock or new longterm bonds. The interest rate is for longterm debt and the interest expense on longterm debt is based on the average balance during the year. No interest is earned on cash. Regular dividends grow at an rate. The tax rate is Calculate the additional funds needed AFN If new financing is required, assume it will be raised by drawing on a line of credit with an interest rate of Assume that any draw on the line of credit will be made on the last day of the year, so there will be no additional interest expense for the new line of credit. If surplus funds are available, pay a special dividend.
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