Question: need help with homework assignment financial management . 4 questiions /problems... Quesion 1 Define the flow of funds model provided in this unit, explain each

need help with homework assignment financial management . 4 questiions /problems...

Quesion 1 Define the flow of funds model provided in this unit, explain each component and how funds flow from savers to producers. question 2 Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000 Price per Unit: $11 Variable cost per unit: 30% Fixed Costs: $125,000 Income taxes: 15% Interest Expense: $200,000 In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same. quetion 3 Calculate the sustainable growth based on the following information: D= 30% ROE = 25% question 4 Calculate a table of interest rates for 5 years based on the following information: The pure interest rate is 2% Inflation expectations for year 1 = 3%, year 2 =4%, years 3-5 =5% The default risk is .1% for year one and increases by .1% over each year Liquidity premium is 0 for year 1 and increases by .2% each year Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5
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