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The equation is the typical EFN equation. The Optical Scam Company has forecast a sales growth rate of 25 percent for next year Current assets,
The equation is the typical EFN equation.
The Optical Scam Company has forecast a sales growth rate of 25 percent for next year Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: a. Calculate the external funds needed for next year using the equation from the chapter. (Do not round Intermediate calculations.) External financing needed $ b-1. Prepare the firm's pro forma balance sheet for next year. (Do not round Intermediate calculations.) b-2. Calculate the external funds needed. (Do not round Intermediate calculations.) External financing needed $ c. Calculate the sustainable growth rate for the company based on the current financial statements. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate $Step by Step Solution
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