Question: How did you find Net borrowing and equity repurchases? Can you show the step to find it........ Sales Growth Payout Ratio Tax Rate Int. Rate

How did you find Net borrowing and equity repurchases? Can you

show the step to find it........ Sales Growth Payout Ratio Tax Rate

How did you find Net borrowing and equity repurchases?

Can you show the step to find it........

Sales Growth Payout Ratio Tax Rate Int. Rate Pro Forma Income Statement Year 0 1 2 10% 10% 40.0% 40.0% 40.0% 40.0% 10.0% 10.0% 3 10% 40.0% 40.0% 10.0% 4 10% 40.0% 40.0% 10.0% 5 10% 40.0% 40.0% 10.0% 6 3% 40.0% 34.0% 10.0% 26.7% % of Sales 20.0% % of Sales 13.3% % of Sales Sales CGS SGA Depreciation EBIT Interest Expense Profit bef. Taxes Taxes Net Income Dividend Payment 998.3 266.2 199.7 133.1 399.3 8.7 390.6 156.3 234.4 1098.1 292.8 219.6 146.4 439.2 9.5 429.7 171.9 257.8 103.1 1207.9 322.1 241.6 161.1 483.2 10.5 472.7 189.1 283.6 113.4 1244.1 331.8 248.8 165.9 497.6 10.8 486.9 165.5 321.3 128.5 10.0% % of LT Debt 93.8 750.0 825.0 907.5 200.0 220.0 242.0 150.0 165.0 181.5 100.0 110.0 121.0 300.0 330.0 363.0 25.0 7.2 7.9 275.0 322.9 355.1 110.0 129.1 142.1 165.0 193.7 213.1 77.5 85.2 Pro Forma Balance heet Year 0 1 1 90.0 99.0 108.9 60.0 66.0 72.6 120.0 132.0 145.2 100.0 110.0 121.0 280.0 308.0 338.8 650.0 715.0 786.5 84.0 92.4 101.6 50.0 55.0 60.5 250.0 71.5 78.7 266.0 496.1 545.7 650.0 715.0 786.5 1 1 12.0% % of Sales 8.0% % of Sales 16.0% % of Sales 13.3% % of Sales 37.3% % of Sales Cash Mktbl Securities AIR Inventory Fixed Assets (net) Total A/P Oth Curr.Liabilities LT Debt Stockholder's Equity Total 119.8 79.9 159.7 133.1 372.7 865.2 111.8 66.6 86.5 600.3 865.2 131.8 87.8 175.7 146.4 409.9 951.7 123.0 73.2 95.2 660.3 951.7 1 144.9 96.6 193.3 161.1 450.9 1046.8 135.3 80.5 104.7 726.3 1046.8 1 149.3 99.5 199.1 165.9 464.5 1078.2 139.3 82.9 107.8 748.1 1078.2 11.2% % of Sales 6.7% % of Sales 10% % of Assets FCFE three methods Net Income add back Depreciation subtract increase in WC subtract capital expenditure add net borrowing FCFF subtract after tax interest add net borrowing Dividends add equity repurchases Sales Growth Payout Ratio Tax Rate Int. Rate Pro Forma Income Statement Year 0 1 2 10% 10% 40.0% 40.0% 40.0% 40.0% 10.0% 10.0% 3 10% 40.0% 40.0% 10.0% 4 10% 40.0% 40.0% 10.0% 5 10% 40.0% 40.0% 10.0% 6 3% 40.0% 34.0% 10.0% 26.7% % of Sales 20.0% % of Sales 13.3% % of Sales Sales CGS SGA Depreciation EBIT Interest Expense Profit bef. Taxes Taxes Net Income Dividend Payment 998.3 266.2 199.7 133.1 399.3 8.7 390.6 156.3 234.4 1098.1 292.8 219.6 146.4 439.2 9.5 429.7 171.9 257.8 103.1 1207.9 322.1 241.6 161.1 483.2 10.5 472.7 189.1 283.6 113.4 1244.1 331.8 248.8 165.9 497.6 10.8 486.9 165.5 321.3 128.5 10.0% % of LT Debt 93.8 750.0 825.0 907.5 200.0 220.0 242.0 150.0 165.0 181.5 100.0 110.0 121.0 300.0 330.0 363.0 25.0 7.2 7.9 275.0 322.9 355.1 110.0 129.1 142.1 165.0 193.7 213.1 77.5 85.2 Pro Forma Balance heet Year 0 1 1 90.0 99.0 108.9 60.0 66.0 72.6 120.0 132.0 145.2 100.0 110.0 121.0 280.0 308.0 338.8 650.0 715.0 786.5 84.0 92.4 101.6 50.0 55.0 60.5 250.0 71.5 78.7 266.0 496.1 545.7 650.0 715.0 786.5 1 1 12.0% % of Sales 8.0% % of Sales 16.0% % of Sales 13.3% % of Sales 37.3% % of Sales Cash Mktbl Securities AIR Inventory Fixed Assets (net) Total A/P Oth Curr.Liabilities LT Debt Stockholder's Equity Total 119.8 79.9 159.7 133.1 372.7 865.2 111.8 66.6 86.5 600.3 865.2 131.8 87.8 175.7 146.4 409.9 951.7 123.0 73.2 95.2 660.3 951.7 1 144.9 96.6 193.3 161.1 450.9 1046.8 135.3 80.5 104.7 726.3 1046.8 1 149.3 99.5 199.1 165.9 464.5 1078.2 139.3 82.9 107.8 748.1 1078.2 11.2% % of Sales 6.7% % of Sales 10% % of Assets FCFE three methods Net Income add back Depreciation subtract increase in WC subtract capital expenditure add net borrowing FCFF subtract after tax interest add net borrowing Dividends add equity repurchases

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

John Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John's earnings and withholdings as the manager of a local...

There are two worksheet tabs: 1) 'Proforma' tab has proforma data for income and balance sheet. Three color coded zones identify data, assumptions and conclusions. Historical data (Column B) is used...

***********PLEASE ANSWER********** Please fill in the blank templates and give the solutions by looking at the Pro forma tab. Thank you!! A E F G H I J B D Pro Forma income Statement Year 0 2 10% 10%...

Develop a pro forma income statement and balance sheet for the years 2016, 2017, and 2018. Assumptions should be based on historical data continue and Using either a DCF valuation, multiple...

FINA 3562 Project 3 Learning objective: Students will learn how to use the percent of sales method to create pro forma income statement and balance sheet. Requirements: Please use Graffitis income...

Please review the historical performance and projections on the Home Depot Value Line page, the spreadsheet, and the pro forma income statement and balance sheet. Submit a complete and thorough 2...

A pro forma Income Statement must be prepared in MS Excel, using a minimum projection of three years, as based on pro forma projections discussed in Chapter 18. You need to include the most recent...

Directions: Construct the company's current balance sheet Construct a pro forma income statement using the company's sustainable growth rate as the projected growth in sales. Note that when you...

Liabilities and Equity Current liabilities $10,000,000 Accounts payable Notes payable 20,000,000 Total current liabilities $30,000,000 Long-term debt $30,000,000 $60,000,000 Total liabilities...

The car rental business was affected by general economic conditions and more particularly by conditions in the travel industry, especially airline traffic. There was a high correlation between...

Ship A is located 4.0 km north and 2.5 km east of ship B. Ship A has a velocity of 22km/h toward the south, and ship B has a velocity of 40km/h in a direction 37o north of east. (a) What is the...

Accompanying a bank statement for Covershot Company is a credit memorandum for $15,300, representing the principal ($15,000) and interest ($300) on a note that had been collected by the bank. The...

BE9.16 (LO 5) Use the information presented for Ottawa Corporation in BE9.15, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to (a) update depreciation for...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

Teamwork. Ethics. Form a group of two or three students. Decide what you believe would be the best way to respond to each of the unacceptable questions included in this chapter. Also, discuss ethical...

Teamwork. Form a group of three or four students and gather employment information and job listings for the following positions.Make an effort to use at least four of the sources identified in the...

List the names of individuals in your personal network of friends, relatives, instructors, and acquaintances who could be valuable to you in a job search. From this list, develop a reference list....