Use the financial statement method to forecast the additional funds needed for Zumba Corporation. Sales during the past year were $600, and they are expected to rise by 30% during next year. Also, during last year fixed assets were being utilized to only 80% percent of capacity. All other assets and liabilities related to operations will increase at the same rate as sales. The profit margin will remain constant at 4 % and the company will continue to pay out 45 % of its earnings as dividends 6. 345 glom) 30% 2016 2017 2016 2017 Proforma Proforma Accounts payable Notes payable $40 $20 Cash Short term investments Accounts Receivable $32 Inventories $35 $18 $34 $94 Accruals Total current liabilities $40 Total current assets $125 Long-term debt $90 Net fixed assets $220 $93 $68 $161 Common stock Retained earnings Total equity Total assets $345 $345 Total liabilities and equity 7. A company has given you the following data to calculate their cost of common equity: the risk-free rate is 2%; beta is 1.80; the required return of the market is 9% 8, Avery Corporation's target capital structure is 40% debt, 10% preferred, and 50% common equity. The interest rate on new debt is 8%, the yield on the preferred is 12.00%, the cost of common from reinvested earnings is 13.5%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Avery's WACC? 9. Granby Foods' (GF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50% The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The company has 10 million shares,of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders' required rate of return is 12.25%. The tax rate is 40%. Calculate the company's WACC. Kenny Electric Company's bonds were issued several years ago and now have 15 years to maturity. These bonds have a 7% annual coupon that is paid semiannually, sell at a price of $ par v WACC calculation? 1,075, and have alue of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the