Assume a company is formed with $100 of equity capital, all of which is immediately invested in working capital Assumptions are as follows Based on this information, forecast the companys net income and cash flow for five years Dividends First year sales Sales growth Cost of goods sold Sales Operat...

Exhibit 4 shows the net income forecasts in Line 7 and cash flow forecasts Change in cash in Line 18 Exhibit 4 indicates that at time 0 the company is ...

Assume a company is formed with $100 of equity capital, all of which is immediately invested in

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Assume a company is formed with $100 of equity capital, all of which is immediately invested in working capital. Assumptions are as follows:

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Based on this information, forecast the company’s net income and cash flow for five years.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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Assume a company is formed with $100 of equity capital, all of which is immediately invested in

Question:

Dividends First-year sales Sales growth Cost of goods sold/Sales Operating expense/Sales Interest income rate Tax rate Working capital as percent of sales Non-Dividend-Paying $100 10% per year 20% 70% 5% 30% 90%

Step by Step Answer:

Exhibit 4 shows the net income forecasts in Line 7 and cash flow forecasts Change in cash in Line 18 Exhibit 4 indicates that at time 0 the company is ...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

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