Suppose that the 2013 actual and 2014 projected financial statements for AFS are initially shown as follows. In these tables, sales are projected to rise by 14 percent in the coming year, and the components of the income statement and balance sheet that are expected to increase at the same 14 percent rate as sales are indicated by green type. Assuming that AFS wants to cover the AFN with half equity and half long-term debt, what amount of additional funds will be needed if debt carries a 9 percent interest rate?

  • CreatedSeptember 23, 2014
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