What is the EFN?

Using the percent sales method, estimate the amount of external financing

XYZ corp will need to fund the next years operations, only compute 3 iterations

Assume that Sales will grow by 20% from the 2012 level

Assume that the firm will not purchase any additional assets

Assume that depreciation expense will be $10 in 2013.

Assume the interest rate on long-term debt will be 10%

The tax rate is 30%

Please show all equations.

Do 3 iterations. what is the EFN Balance sheet 2012 Current Assets 50 100 Fixed assets, net Total Assets 150 Current liabilities Long-term debt (PLUG 50 Retained Earnings 60 Liabilities and equity 150 Income statement Sales 50 COGS 20 Gross margin 30 Operating expense 100 Depreciation 100 Interest EBT Taxes 1.5 Net income of Sales Iteration 2013 2013 2013 2013 2013 2013 Using the percent sales method, estimate the amount of external financing XYZ corp will need to fund the next years operations only compute 3 iterations Assume that Sales will grow by 20% from the 2012 level Assume that the firm will not purchase any additional assets Assume that depreciation expense will be $10 in 2013. Assume the interest rate on long-term debt will be 10% The tax rate is 30%