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  3. you have a stock which pays a $2.15 dividend which

You have a stock which pays a $2.15 dividend which is expected to grow at...

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You have a stock which pays a $2.15 dividend which is expected to grow at 13% for the next four years, then at a constant 5% into the future, the discount rate is 8%. 95.74 93.97 87.12 99.83 91.45 FIN Company: Balance Sheet as of December 31 ($ million) Cash $40 $40 Account receivables Inventories Total current assets $40 Account Payables ? Notes payable $160 Other current liabilities $310 Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity $450 Total liabilities and equity $100 ? $140 $114 Net fixed assets Total assets $450 FIN Company: Income Statement for Year Ended December 31 ($ million) Net sales $800.0 Cost of goods sold (80% of net sales) Gross profit (EBITDA) Amortization ($73.0) Depreciation ($12.0) Earnings before interest and taxes (EBIT) Interest expense ($4.5) Earnings before taxes (EBT) Taxes (20%) Net Income Industry Average Ratios Quick ratio 1.0 Industry Average Ratios Quick ratio Fixed assets turnover ratio Debt ratio Total assets turnover ratio Times interest earned (TIE) ratio Profit margin Inventory turnover ratio Return on total assets (ROA) Days sales outstanding (DSO) Return on equity (ROE) 1.0 6.0 30.0% 3.0 7.0 3.0% 8.5 9.0 24 days 12.9%

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