Suppose that the 2016 actual and 2017 projected financial statements for your firm are initially shown as

Question:

Suppose that the 2016 actual and 2017 projected for your firm are initially shown as follows. In these tables, sales are projected to rise by 18 percent in the coming year, and the components of the income statement and that are expected to increase at the same 18 percent rate as sales are indicated by green type. Assuming that your firm has to pay 9 percent interest on debt, what would the AFN be if needed capital was to be raised entirely from equity?

How would your answer change if the entire AFN was to be raised from long-term debt? And what does this imply about the relationship between the sources of funding and the amount needed?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...