An analyst is making projections for a firm for fiscal year 2023. The analyst has the...

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An analyst is making projections for a firm for fiscal year 2023. The analyst has the following information: In 2022, the firm's sales are 1000 (in thousands) and has an accumulated depreciation of 300 (thousands). Its retained earnings (balance sheet) is 95. Sales are expected to grow by 10% per year. Cost of goods sold will be 50% of sales. 30% of net income will be paid out as dividends. Fixed assets are predicted to be 80% of sales Fixed assets will be depreciated at 10% per year. Current assets are predicted to be 10% of sales Current liabilities are predicted to be 15% of sales The firm relies on debt AND equity financing to raise capital. It faces a cost of debt of 9%. It also aims to maintain a debt- to-equity ratio of 0.3 going forward. The firm faces 40% corporate income tax rates. In this example, Depreciation Expense (t) = Depreciation Rate* Gross Fixed Assets (t) Interest Expense (t) = Interest Rate* Debt (t) The firm's pro forma statements look like the following: Balance sheet: The firm's pro forma statements look like the following: Balance sheet: Asset Current Asset Net Fixed Assets (= GFA - Accum. Depr.) Total Assets Income statement: Sales - COGS - Depreciation Interest Expense EBT - Taxes Net Income Liabilities and Equity Current Liabilities Debt Equity (stock + retained earnings) Total Liabilities and Equity - Dividends Retained Earnings Fill in the pro-forma statement for 2023. Compute the projected level of stock. What is the closet to? An analyst is making projections for a firm for fiscal year 2023. The analyst has the following information: In 2022, the firm's sales are 1000 (in thousands) and has an accumulated depreciation of 300 (thousands). Its retained earnings (balance sheet) is 95. Sales are expected to grow by 10% per year. Cost of goods sold will be 50% of sales. 30% of net income will be paid out as dividends. Fixed assets are predicted to be 80% of sales Fixed assets will be depreciated at 10% per year. Current assets are predicted to be 10% of sales Current liabilities are predicted to be 15% of sales The firm relies on debt AND equity financing to raise capital. It faces a cost of debt of 9%. It also aims to maintain a debt- to-equity ratio of 0.3 going forward. The firm faces 40% corporate income tax rates. In this example, Depreciation Expense (t) = Depreciation Rate* Gross Fixed Assets (t) Interest Expense (t) = Interest Rate* Debt (t) The firm's pro forma statements look like the following: Balance sheet: The firm's pro forma statements look like the following: Balance sheet: Asset Current Asset Net Fixed Assets (= GFA - Accum. Depr.) Total Assets Income statement: Sales - COGS - Depreciation Interest Expense EBT - Taxes Net Income Liabilities and Equity Current Liabilities Debt Equity (stock + retained earnings) Total Liabilities and Equity - Dividends Retained Earnings Fill in the pro-forma statement for 2023. Compute the projected level of stock. What is the closet to?

Answer rating: 100% (QA)

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