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undefined 7. Using 7% growth rate, calculate Franchise Factor, growth factor, Franchise PE & Intrinsic Leading PE ratio assuming Income statement to be end of

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7. Using 7% growth rate, calculate Franchise Factor, growth factor, Franchise PE & Intrinsic Leading PE ratio assuming Income statement to be end of year 1998 & balance sheet to be beginning of year 1997. (10 Marks) Balance Sheet 1/5 Year Stock Market Cash 1000 A/P 2000 Sales 30,000 1 50 10% A/R 3000 Accruals 5000 NI 12,000 2 75 12% Inv 5000 ST Loan 1000 d 35% 3 80 13% 4000 LT Loan 1000 # of 10 4 90 15% shares TA 13000 TL 9000 5 100 17% 1500 Tax Rate 35% RE 2500 OE 4000 TL & OE 13000 FA Sh. Cap 7. Using 7% growth rate, calculate Franchise Factor, growth factor, Franchise PE & Intrinsic Leading PE ratio assuming Income statement to be end of year 1998 & balance sheet to be beginning of year 1997. (10 Marks) Balance Sheet 1/5 Year Stock Market Cash 1000 A/P 2000 Sales 30,000 1 50 10% A/R 3000 Accruals 5000 NI 12,000 2 75 12% Inv 5000 ST Loan 1000 d 35% 3 80 13% 4000 LT Loan 1000 # of 10 4 90 15% shares TA 13000 TL 9000 5 100 17% 1500 Tax Rate 35% RE 2500 OE 4000 TL & OE 13000 FA Sh. Cap

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