Could you please help with calculating the EFN for 10, 15, and 40 percent growth rates. The most recent financial statements for Crosby, Incorporated, follow. Interest expense and short-term debt will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales $ 754,000 Costs 610,000 Other expenses 24,500 Earnings before interest and taxes $ 119,500 Interest paid 10,400 Taxable income $ 109,100 Taxes (21%) 22,911 Net income $ 86,189 Dividends $ 42,540 Addition to retained earnings 43,649 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,340 Accounts payable $ 57,800 Accounts receivable 33,670 Notes payable 14,900 Inventory 70,610 Total $ 72,700 Total $ 128,620 Long-term debt $ 102,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 97,000 Net plant and equipment $ 211,000 Retained earnings 67,920 Total $ 164,920 Total assets $ 339,620 Total liabilities and owners’ equity $ 339,620 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Could you please help with calculating the EFN for 10, 15, and 40 percent growth rates. The most recent financial statements for Crosby, Incorporated, follow. Interest expense and short-term debt will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales $ 754,000 Costs 610,000 Other expenses 24,500 Earnings before interest and taxes $ 119,500 Interest paid 10,400 Taxable income $ 109,100 Taxes (21%) 22,911 Net income $ 86,189 Dividends $ 42,540 Addition to retained earnings 43,649 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,340 Accounts payable $ 57,800 Accounts receivable 33,670 Notes payable 14,900 Inventory 70,610 Total $ 72,700 Total $ 128,620 Long-term debt $ 102,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 97,000 Net plant and equipment $ 211,000 Retained earnings 67,920 Total $ 164,920 Total assets $ 339,620 Total liabilities and owners’ equity $ 339,620 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Could you please help with calculating the EFN for 10, 15, and 40 percent growth rates.
The most recent financial statements for Crosby, Incorporated, follow. Interest expense and short-term debt will remain constant; the tax rate and the |
| CROSBY, INCORPORATED | ||
| 2020 Income Statement | ||
| Sales | $ 754,000 | |
|---|---|---|
| Costs | 610,000 | |
| Other expenses | 24,500 | |
| Earnings before interest and taxes | $ 119,500 | |
| Interest paid | 10,400 | |
| Taxable income | $ 109,100 | |
| Taxes (21%) | 22,911 | |
| Net income | $ 86,189 | |
| Dividends | $ 42,540 | |
| Addition to |
43,649 |
| CROSBY, INCORPORATED | |||
| Balance Sheet as of December 31, 2020 | |||
| Assets | Liabilities and Owners’ Equity | ||
|---|---|---|---|
| Current assets | Current liabilities | ||
| Cash | $ 24,340 | Accounts payable | $ 57,800 |
| Accounts receivable | 33,670 | Notes payable | 14,900 |
| Inventory | 70,610 | Total | $ 72,700 |
| Total | $ 128,620 | Long-term debt | $ 102,000 |
| Owners’ equity | |||
| Fixed assets | Common stock and paid-in surplus | $ 97,000 | |
| Net plant and equipment | $ 211,000 | Retained earnings | 67,920 |
| Total | $ 164,920 | ||
| Total assets | $ 339,620 | Total liabilities and owners’ equity | $ 339,620 |
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Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
|
Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
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