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Use the following information to make projections regarding AIS for 2015. Assume that revenue growth is 5%, depreciation is 10% of fixed assets, EBITDA margin
Use the following information to make projections regarding AIS for 2015. Assume that revenue growth is 5%, depreciation is 10% of fixed assets, EBITDA margin increases from 12% to 13%, interest is 12.5% of the prior year's debt. Cash, prepaid expenses, and fixed assets remain unchanged, all working capital accounts increase as a fixed % of revenue. The tax rate is 34%.
2014 Income Statement | 2014 Balance Sheet | |||||
Revenue | 20000.0 | Assets | Liabilities & Equity | |||
EBITDA | 2400.0 | Cash | 215 | Accounts Payable | 7500 | |
depreciation | 1486 | Prepaid Expenses | 1300 | Short Term Debt | 5400 | |
Interest | 1740.1 | Accounts Receivable | 3750 | Long Term Debt | 7264 | |
EBT | -826.1 | Inventory | 4850 | Retained Earnings | 150 | |
Taxes | -280.87 | Deferred Tax Assets | 854 | Paid in Cap | 2655 | |
Net Income | -545.23 | Fixed Assets | 12000 | |||
total | 22969 | total | 22969 |
- How much additional external funding does the firm require in 2015?
- Calculate both ROE and ROA for 2015
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