assuming all debt is constant show that EFN can be written as

Question 2 (10 points): Expectations: Please detail your steps in deriving your answer. Provide explanations from the starting point to the end of the derivatio S = Previous year's sales A- Total assets E Total equity g Projected growth in sales PM Profit margin b = Retention (plowback ratio) Assuming that all debt is constant, show that EFN can be written as: EFN -PM(S)b + [A - PM(S)blx g needs will equal to A x g. The addition to retained earnings will equal to Hint: Asset PM(S)b (1+g)