Question: EMI Case Guidelines Part II 1. Generate Proforma financial statements for the next year (Income Statement and Balance Sheet) using the worksheet titled EMI Proforma

EMI Case Guidelines Part II 1. Generate Proforma financial statements for the next year (Income Statement and Balance Sheet) using the worksheet titled "EMI Proforma" posted on CANVAS. 2. Using the completed EMI Proforma worksheet, answer the following questions: a. What is the Plug (Needed Funds) at the forecasted growth rate for the next year? b. What is the internal growth rate (positive or negative) for EMI, given its current dividend policy? c. What will be the internal growth rate if the firm discontinued the dividends? d. In the light of the above analysis and its negative equity on the books, why do you think the firm has positive market capitalization (Use exhibit 6 as the basis)? e. What do you think is the future of EMI

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