Question: All historical information remains the same ( through Year X - 1 ) . Use this new set of assumptions: Revenue growth: 3 0 %
Allhistorical information remains the same through Year X
Usethis new set of assumptions:
Revenue growth:
YearXE
Year XE
improvement in Gross Margin for Year X E from yearXNo further change in the GrossMargin for Year X
improvement in Sellingin Year XESame level in Year XE
G&A remains constanton a common size basis.
$ increase in R&D in X E
Same R&D level in Year X E
BasicShares outstanding
A new section of the existing plant isconstructed for $This newconstruction is depreciated over years using the straight line method.All other depreciation remains the same forthe years X E and X E
The plant is financed with a $ year bondwith a fixed interest payment of annually.
The Company, for the first time, grants options to variousmembers ofmanagement with an exercise price of $ These options aregranted on the first day of Year X E
There are no other options, warrants or convertible securities
The average stock price for Year X E and YearX E is projected to be $
Allother interest payments, interest income and tax rates remain the same.
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