Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000
1. Construct a pro forma income statement for the first year and second year for the following assumptions:
Units of Sales in Year 1: 110,000
Price per Unit: $11
Variable cost per unit: 30%
Fixed Costs: $125,000
Income taxes: 15%
Interest Expense: $200,000
In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same.
2. Calculate a table of interest rates for 5 years based on the following information:
The pure interest rate is 2%
Inflation expectations for year 1 = 3%, year 2 =4%, years 3-5 =5%
The default risk is .1% for year one and increases by .1% over each year
Liquidity premium is 0 for year 1 and increases by .2% each year
Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5
3. Calculate the sustainable growth based on the following information:
* earning after taxes = $35,000
* equity = $100,000
* d=22.4%
4. Future value of single sum problem
You put $2,000 in an investment account today which will earn 8% over the next 14 years, what is the future value?
5. Future value of annuity problem
You deposit $10,000 into a retirement account at the end of the next 10 years earning 9% interest, what is the future value of your retirement after 10 years?
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Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000 was first posted on August 13, 2019 at 6:58 am.
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Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000 was first posted on August 13, 2019 at 6:58 am.
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