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Use the following information to make projections regarding G Inc. 2 0 2 4 . Assume that revenue growth is 5 % , depreciation is

Use the following information to make projections regarding G Inc. 2024. Assume that revenue growth is 5%, depreciation is 5% of fixed assets, EBITDA margin increases from 12% to 13% of revenue, interest is 12.5% of the prior years total debt. Cash, prepaid expenses, and fixed assets are unchanged, all working capital accounts increase as a fixed % of revenue. The tax rate is 34%(if applicable).
a) How much new debt does G require in 2024 to fund its sales growth?
b) Calculate both ROA and ROE for 2024. Why are these two ratios so different?
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