You are to conduct a financial planning exercise for Comcast Income Statement 2022 Sales Costs EBIT...

 

 

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You are to conduct a financial planning exercise for Comcast Income Statement 2022 Sales Costs EBIT Interest Expenses EBT Taxes (@21%) Net Income Dividends Comcast Balance Sheet 2022 Current Assets Capital Assets Total Assets 2022 121,427 98,316 23,111 Long Term Debt Non Debt Long Term Liabilities Long Term Liabilities Shareholders Equity Total Liabilities & Equity 3,896 19,215 4,359 5,370 4,741 2022 21,826 235,449 257,275 Short Term Debt 780 Non Debt Short Term Liabilities 25,469 Current Liabilities 26,249 106,066 43,413 149,479 81,627 257,275 The following assumptions seem reasonable for an initial planning exercise. Now, you want to conduct a sensitivity analysis where sales only grow at 3.50% per year. The following accounts will be treated as percents of sales; costs at 81% of sales, current assets at 18%, capital assets at 194%, and non debt short-term liabilities at 21%. For planning purposes freeze the following accounts at 2022 levels; interest expenses, short term debt, long-term debt, and non debt long-term liabilities. Maintain shares outstanding and dividends per share at their current levels, 4,220 shares and $1.06 respectively. Use the current 21% flat tax rate under the TC.JA as the rate that the firm will face. Assuming sales only grow at 3.50% per year, and maintaining the other assumptions, what will be the External New Funding Required in 2027? You are to conduct a financial planning exercise for Comcast Income Statement 2022 Sales Costs EBIT Interest Expenses EBT Taxes (@21%) Net Income Dividends Comcast Balance Sheet 2022 Current Assets Capital Assets Total Assets 2022 121,427 98,316 23,111 Long Term Debt Non Debt Long Term Liabilities Long Term Liabilities Shareholders Equity Total Liabilities & Equity 3,896 19,215 4,359 5,370 4,741 2022 21,826 235,449 257,275 Short Term Debt 780 Non Debt Short Term Liabilities 25,469 Current Liabilities 26,249 106,066 43,413 149,479 81,627 257,275 The following assumptions seem reasonable for an initial planning exercise. Now, you want to conduct a sensitivity analysis where sales only grow at 3.50% per year. The following accounts will be treated as percents of sales; costs at 81% of sales, current assets at 18%, capital assets at 194%, and non debt short-term liabilities at 21%. For planning purposes freeze the following accounts at 2022 levels; interest expenses, short term debt, long-term debt, and non debt long-term liabilities. Maintain shares outstanding and dividends per share at their current levels, 4,220 shares and $1.06 respectively. Use the current 21% flat tax rate under the TC.JA as the rate that the firm will face. Assuming sales only grow at 3.50% per year, and maintaining the other assumptions, what will be the External New Funding Required in 2027?

Answer rating: 100% (QA)

SOLUTION To calculate the External New Funding Required we need to project the Balance Sheet for 2027 based on the given assumptions and freeze certai... View the full answer