Tax rate of $25\mathrm{.}0\%$

Balance Sheet

Constant operating cash level of $$10\mathrm{.}0$ million

Accounts receivable DSO of $35$ days

Inventory turnover of $30x($inventory consists of recyclable materials resold$)$

Other long$-$term assets at $1\mathrm{.}0\%$ of revenue

Accounts payable days cost of sales $($COS$)$ of $50$ days

Accrued expense $2\mathrm{.}0\%$ of COS

Other long$-$term liabilities $1\mathrm{.}5\%$ of COS

Dividend payout ratio reduced to $50\%$ from $70\%$ historically

Maintenance capital expenditures of $8\mathrm{.}0\%$ of revenue

Expansion capital expenditures are the cost of the acquisition in $2024,$ no expansion capx

beyond $2024$

WCC has $10$ million shares outstanding

You are a financial analyst in the financial planning and analysis department of WCC$.$ You have

been assigned the following:

Complete a five$-$year forecast based on the above assumptions. TO BE PERFORMED IN

EXPREP

IN YOUR POWER POINT FOR THE BOARD OF DIRECTORS:

Explain why the dividend payout ratio would be reduced and show the impact on

dividends per share comparing $2023$ to $2024,$ which $2024$ reflects the lower payout ratio.

Based on $2024,$ explain if WCC is$,$ more or less leveraged than the competitors.

Management has indicated that a multiple of $8$x EBITDA is reasonable to value the

invested capital of the company. Explain if and why shareholder value has been created

from the acquisition when comparing the $2023$ value per share to the $2024$ value per

share.WASTE CONTROL CONCEPTS CORPORATION $($$$000)$ Calculate on average balance