Question
The 2020 and 2019 balance sheets for Siesta Industries are provided below. The companys sales for 2020 were $1,100 million, and EBITDA was 20% of
The 2020 and 2019 balance sheets for Siesta Industries are provided below. The companys sales for 2020 were $1,100 million, and EBITDA was 20% of sales. Furthermore, depreciation amounted to 10% of net fixed assets, interest expense was $24 million, the corporate tax rate was 25%, and Siesta pays out 45% of its net income as dividends.
Siesta had 10 million shares outstanding in 2020, the 12/31/20 stock price was $75 per share, and its after-tax cost of capital was 12%.
***Set up the companys 2020 Statement of Stockholders Equity in Excel Format - see an example of format below.
Statement of Stockholder's Equity | |||||
Shares | Amount | Retained Earnings | Total Stockholder Equity | ||
Balances December 31, 2019 | |||||
2020 Net Income | $121,482,000.00 | ||||
Cash dividends | -$54,666,900.00 | ||||
Addition to retained Earnings | |||||
Balances December 31, 2020 | |||||
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