Question: Question 2: Using the facts noted below: 1) determine whether AFN is positive or negative and by how much? And 2) and what would be
Question 2: Using the facts noted below: 1) determine whether AFN is positive or negative and by how much? And 2) and what would be AFN if you just found out that you can also raise $20 million in common equity? (10 Marks) FACTS Old sales New sales Old Total Assets New Total Assets $ $ $ $ Millions 200.00 225.00 300.00 375.00 Profit Margin Number of Shares Div. per share Tax rate 10.0% 2,000,000 $ 3.00 50.00% $ 5.00 Spontaneous AP Spontaneous Accruals $ $ 15.00 20.00
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