Problem 19.17 If projected sales growth is actually 8.80%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.) (Round answer to 2 decimal places, e.g. 0.45. Enter negative amount using either a negative sign preceding the number e.g. -0.45 or parentheses e.g. (0.45).) Exhibit 19.10 Empire Enterprises: Pro Forma Income Statement and Balance Sheet (5 millions) Income Statement Net sales $ 120.0 108.0 $ 12.0 Costs Net income Dividends $ 7.2 Additions to retained earnings $ 4.8 Balance Sheet Assets Liabilities and Stockholders' Equity Change Change Assets $ 60.0 $ 10.0 Total debt $ 20.0 $0.0 Equity 34.8 4.8 $ 10.0 $ 54.8 $ 4.8 Total assets $ 60.0 Total liabilities and stockholder's equity External financing needed (EFN) $5.2 $ 5.2 The pro forma balance sheet for Empire Enterprises does not balance, and the difference is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt.

Problem 19.17 If projected sales growth is actually 8.80%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.) (Round answer to 2 decimal places, e.g. 0.45. Enter negative amount using either a negative sign preceding the number e.g. -0.45 or parentheses e.g. (0.45).) Exhibit 19.10 Empire Enterprises: Pro Forma Income Statement and Balance Sheet (5 millions) Income Statement Net sales $ 120.0 108.0 $ 12.0 Costs Net income Dividends $ 7.2 Additions to retained earnings $ 4.8 Balance Sheet Assets Liabilities and Stockholders' Equity Change Change Assets $ 60.0 $ 10.0 Total debt $ 20.0 $0.0 Equity 34.8 4.8 $ 10.0 $ 54.8 $ 4.8 Total assets $ 60.0 Total liabilities and stockholder's equity External financing needed (EFN) $5.2 $ 5.2 The pro forma balance sheet for Empire Enterprises does not balance, and the difference is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 12SP

See similar textbooks

Similar questions

Give typing answer otherwise I'll give you downward
SE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Left-Aid Corporation DPS $2.45 Total Asset Turnover 3.80 Net Profit Margin 6.50% EPS $3.50 Total Assets/Equity 1.60 Refer to Exhibit 9.17. What is Left-Aid Corporation's expected sustainable growth rate? a. 22.1% b. 18.7% c. 11.9% d. 27.7% e. 30.0%
Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 11 11 = = 8.6% 0.47 0.62 $ 97,000 $ 43,000 Required: Based on the above information, calculate the sustainable growth rate for Southern Lights Co. include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)
Pls in text help me please;!!!
Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ration 2.29 Sustainable growth rate 5.7% 1.76 36% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
19 - When vertical analysis is applied to the income statement of a business with net sales of TL 1,000,000 and non-operating expenses of TL 13,000, which of the following is the vertical analysis value of non-operating expenses (%)? a) 4.5 B) 2,5 NS) 5.5 D) 1.3 TO) 3.3
Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends Sustainable growth rate Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16. 20.96 9.6% .57 .72] = = $ 107,000 = $ 43,000 %
Briefly describe your perception of Apple's liquidity and profitability based on your calculations and review of these ratios and results.
take&inprogress=false Assume the following sales data for a company: Current year $718,386 Preceding year 639,310 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? O a. 23.4% Ob. 1.4% O c. 12.4% O d. 11.0%
Suppose the following model describes changes in Company ABC’s sales: ∆ ABCt = 0.078 - 0.095(∆ ABCt-1) The current change (first difference) in the company’s sales growth rate is 0.04. Use this information to answer the questions below. (NB: For all the questions below, give your final answers to 3 decimal places.) 1. Calculate the mean-reverting level for changes in the company’s sales growth rate. (Give your answer in decimals). 2. What is the best prediction of the next change? (Give your answer in decimals) 3. What is the prediction of the change following the next change? (Give your answer in decimals) 4. blanks. Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first…
Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.8% 49 64 -$99,000 $46,000 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.32.16) Sustainable growth a
Requirement 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) McCormick Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 Increase (Decrease) 2024 2023 Amount Percentage Net Sales Revenue $429,000 $373,750 % Expenses: Cost of Goods Sold 204,000 190,450 % Selling and Administrative Expenses 96,000 91,050 % Other Expenses 7,450 5,750 % Total Expenses 307,450 287,250 % Net Income $121,550 $86,500 % Requirement 2. Why did 2024 net income increase by a higher percentage than net sales revenue? Net income increased by a higher percentage than total net…