Question: Create a pro-forma income statement for fiscal year 1999 under the assumption that the debt is investment grade, and then under the assumption that the

Create a pro-forma income statement for fiscal year 1999 under the assumption that the debt is investment grade, and then under the assumption that the debt is below investment grade. Under each assumption, can UST afford to make the interest payments based on the respective pro-forma income statement? In answering this question, the CEO only wants a simplified pro-forma income statement that takes the following form: SALES EBIT INTEREST EXPENSE PRE-TAX NET INCOME TAX NET INCOME

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