Input: Assume that all assets and current liabilities will grow by the sales growth rate....

90.2K

Verified Solution

Question

Finance

imageimage

Input: Assume that all assets and current liabilities will grow by the sales growth rate. Calculation \& Output \begin{tabular}{|l|} \hline Pro forma income statement \\ Sales \\ Costs \\ Taxable income \\ Taxes (21%) \\ Net income \\ Dividends \\ Add. To RE \\ \hline \end{tabular} \begin{tabular}{|ll|} \hline Current assets & Pro forma balance sheet \\ Fixed assets & Current liabilities \\ & Long-term debt \\ Total & Equity \\ Total \\ \hline \end{tabular} What is the EFN? EFN What is the IGR and SGR? ROA= Net income / Total Assets ROE= Net income / Total Equity Retention ratio =1 - Payout ratio Internal Growth Rate=(ROAxb)/(1ROAxb) Sustainable Growth Rate =(ROExb)/(1ROExb)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students