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The accounts related to the Balance Sheet as well as Income Statement for a company...

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Finance

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The accounts related to the Balance Sheet as well as Income Statement for a company are given below as of Dec 31st 2018 Assume that the company does not distribute any dividends and has no depreciation and no current liabilities. Company is not planning to purchase or sell stock, and will increase its assets and COGS at the same rate as sales in 2019 If the company would like to grow by 3.3% in 2019 and would like to keep its D/E ratio as in 2018. The company will borrow, if needed and negotiate its interest rate for its entire debt (old and new) for 2019. What should be the interest rate on the company's debt for the year of 2019 for the company to achieve 3.3% growth rate? Produce the pro-forma income statement and balance sheet for 2019 Income Statement Projected 2019 2018 140 20 Sales Costs Interest Taxable Income Taxes (40%) Net Income 120 4 2 Balance Sheet 2018 Projected 2019 2018 Projected 2019 Debt Common Stock Retained Earnings Current Assets 150 3,040 Fixed Assets 4,000 200 Total Assets 4,150 910

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