|Year||2019||Year +1||Year +2||Year +3|
|<Cost of Goods Sold>||-14,762.0||-18,931||-20,607||-22,432|
|<Selling, General and Administrative Expenses>||-11,711.0||-13,169||-14,336||-15,605|
|Income before Tax||10,425.0||8,126||8,818||9,856|
|Cash and Cash Equivalents||1,651||1,804||1,964||2,138|
|Accounts Receivable - Net||3,725||5,295||4,524||6,165|
|Property, Plant & Equipment - at cost||19,058||21,151||23,744||26,837|
|Other Non-Current Assets (1)||980||1,010||1,041||1,073|
|Accounts Payable - Trade||2,000||3,243||2,634||3,594|
|Notes Payable and Short Term Debt||274||316||331||382|
|Long Term Debt||2,550||4,004||4,117||4,751|
|Long Term Accrued Liabilities||4,624||5,034||5,479||5,965|
|Common Stock + Paid in Capital||614||248.4||260||300|
|Common Shareholders' Equity||9,192||8,105||9,107||10,313|
|Total Liabilities and Equities||18,640||20,701||21,668||25,004|
Note: Common Dividends are 40% of NI
|# of shares||1581.0|
|Levered Market Beta||0.76|
|Risk Free Rate||4.07%|
|Market Risk Premium||6.11%|
A- what are the Dividends for Year +1
B- what are the Dividends for Year +2
C- what are the Dividends for Year +3
D- what is the Required Income for Year +1
E- what is the Required Income for Year +2
F- what is the Required Income for Year +3
G- what are the Dividends for Year t+1
H- what is the continuing DIV
I- What is the value of the stock according to the Financial Statement forecast
J- Currently, the D/E ratio is 0.5. What will be the new levered market beta of the firm if the D/E ratio changes to 1.2?
Sorry, but we are only required to answer first 4 parts of the question.
The rest of the question will be solved in same tone.
For the last part (j) you first have to deleverage the beta and then again releverage the beta to get the answer.
Hope it helps.
All the best?
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