Use the AFN equation to estimate Hatfields required new external capital for 2016 if the sales growth rate is 10%. Assume that the firm's 2019 ratios will remain the same in 2016. (Hint: Hatfield was operating at full capacity in 2015.) Define the term capital intensity. Explain how a decline in capital intensity would affect the AFN. other things held constant. Would economies of scale combined with rapid growth affect capital intensity, other things held constant? Also, explain how changes in each of the following would affect AFN. holding other things constant: the growth rate, the amount of accounts payable, the profit margin, and the payout ratio. Define the term self-supporting growth rate. What is Hatfield's self-supporting growth rate? Would the self-supporting growth rate be affected by a change in the capital intensity ratio or the other factors mentioned in the previous question? Other things held constant, would the calculated capital intensity ratio change over time if the company were growing and were also subject to economies of scale and/or lumpy assets? Use the following assumptions to answer the questions below: Operating ratios remain unchanged. Sales will grow by 10%, 8%, 5%, and 5% for the next 4 years.The target Assume that FCF will continue to grow at the growth rate for the last year In the forecast horizon (Hint: gt = 5%). What is the horizon value at 2010? What is the present value of the horizon value? What is the present value of the forecasted FCF? (Hint: Use the free cash flows for 2016 through 2019.) What is the current value of operations? Using information from the 2015 financial statements, what is the current estimated In-trinsic stock price? Continue with the same assumptions for the No Change scenario from the previous question, but now forecast the balance sheet and income statements for 2016 (but not for the following 3 years) using Ihe following preliminary financial policy. Regular dividends will grow by 10%. No additional long-term debt or common stock will be issued. The interest rate on all debt is 8%. Interest expense for longterm debt is based on the average balance during the year. If the operating results and the preliminary financing plan cause a financing deficit, eliminate the deficit by drawing on a line of credit. The line of credit would be tapped on the last day of the year, so it would create no additional interest expenses for that year. If there is a financing surplus, eliminate it by paying a special dividend. After forecasting the Use the AFN equation to estimate Hatfields required new external capital for 2016 if the sales growth rate is 10%. Assume that the firm's 2019 ratios will remain the same in 2016. (Hint: Hatfield was operating at full capacity in 2015.) Define the term capital intensity. Explain how a decline in capital intensity would affect the AFN. other things held constant. Would economies of scale combined with rapid growth affect capital intensity, other things held constant? Also, explain how changes in each of the following would affect AFN. holding other things constant: the growth rate, the amount of accounts payable, the profit margin, and the payout ratio. Define the term self-supporting growth rate. What is Hatfield's self-supporting growth rate? Would the self-supporting growth rate be affected by a change in the capital intensity ratio or the other factors mentioned in the previous question? Other things held constant, would the calculated capital intensity ratio change over time if the company were growing and were also subject to economies of scale and/or lumpy assets? Use the following assumptions to answer the questions below: Operating ratios remain unchanged. Sales will grow by 10%, 8%, 5%, and 5% for the next 4 years.The target Assume that FCF will continue to grow at the growth rate for the last year In the forecast horizon (Hint: gt = 5%). What is the horizon value at 2010? What is the present value of the horizon value? What is the present value of the forecasted FCF? (Hint: Use the free cash flows for 2016 through 2019.) What is the current value of operations? Using information from the 2015 financial statements, what is the current estimated In-trinsic stock price? Continue with the same assumptions for the No Change scenario from the previous question, but now forecast the balance sheet and income statements for 2016 (but not for the following 3 years) using Ihe following preliminary financial policy. Regular dividends will grow by 10%. No additional long-term debt or common stock will be issued. The interest rate on all debt is 8%. Interest expense for longterm debt is based on the average balance during the year. If the operating results and the preliminary financing plan cause a financing deficit, eliminate the deficit by drawing on a line of credit. The line of credit would be tapped on the last day of the year, so it would create no additional interest expenses for that year. If there is a financing surplus, eliminate it by paying a special dividend. After forecasting the