Assume Antelope Equipment is planning on growing its sales by 25% next year. Use the first pass section to determin any additional funds needed second pass section to add the new financing (use the current weight for long-term debt, preferred stock and common stock when allocating the A balance the balance sheet. Note: the preferred dividend will not change but the common stock dividend will grow by 6%. Also, I have given your the Balance Sheet and Income Statement as a percentage of sales except depreciation, which is a percentage of PP&E. This does not mean you use forecasting every item on the pro forma statements (i.e. you have to know which items use % of sales and which items are
Assume Antelope Equipment is planning on growing its sales by 25% next year. Use the first pass section to determin any additional funds needed second pass section to add the new financing (use the current weight for long-term debt, preferred stock and common stock when allocating the A balance the balance sheet. Note: the preferred dividend will not change but the common stock dividend will grow by 6%. Also, I have given your the Balance Sheet and Income Statement as a percentage of sales except depreciation, which is a percentage of PP&E. This does not mean you use forecasting every item on the pro forma statements (i.e. you have to know which items use % of sales and which items are
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume Antelope Equipment is planning on
growing its sales by 25% next year. Use the first
pass section to determin any additional funds
needed second pass section to add the new
financing (use the current weight for long-term
debt, preferred stock and common stock when
allocating the A balance the balance sheet. Note:
the preferred dividend will not change but the
common stock dividend will grow by 6%. Also, I
have given your the Balance Sheet and Income
Statement as a percentage of sales except
depreciation, which is a percentage of PP&E.
This does not mean you use forecasting every
item on the pro forma statements (i.e. you have
to know which items use % of sales and which
items are
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