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The CEO of your company is interested in paying a dividend next year (2022) so that the projected net funding need in 2022 will be
The CEO of your company is interested in paying a dividend next year (2022) so that the projected net funding need in 2022 will be exactly zero. You are tasked with forecasting the dividend that can be paid next year, and you are given the following information: . Depreciation in 2021 is $25M Net property, plant, and equipment is $256M in 2021 and $200M in 2020 Interest expense in 2021 is $20M Long-term debt is $460M in 2021 and $400M in 2020 In 2022, pro forma current assets equals $100M and pro-forma current liabilities equals $70M In 2021, current assets equals $80M and current liabilities equals $70M a) What is the pro-forma depreciation expense in 2022? (3 points) b) What is the pro-forma interest expense in 2022? (3 points)
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