(Financial forecasting) Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $12.39 million in sales with net income of $1.22 million. The firm anticipates that next year's sales will reach $15.54 million with net income rising to $2.17 million. Given its present hig rate of growth, the firm retains all of its earnings to help defray the cost of new investments. The firm's balance sheet for the year just ended is as follows: Estimate Zapatera's total financing requirements (total assets) and its net funding requirements (discretionary financing needed) for 2014. Note: Use the percentage of sales given in Zapatera Enterprises' balance sheet for 2013. Hint: Make sure to round all intermediate calculations to at least five decimal places. Pro forma Balance Sheet Current assets Net fixed assets Total Liabilities and Owners' Equity Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total $ $ $ $ $ 12/31/14 Data table Zapatera Enterprises, Inc. Balance Sheet Current assets Net fixed assets Total Liabilities and Owners' Equity Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total 12/31/13 3,100,000 6,500,000 9,600,000 2,600,000 1,600,000 4,200,000 1,200,000 1,700,000 2,500,000 5,400,000 9,600,000 % of Sales 25.020% 52.462% 20.985% NAⓇ NA NAⓇ NA. This figure does not vary directly with sales and is assumed to remain constant for purposes of forecasting next year's financing requirements. (Click on the icon in order to copy its contents into a spreadsheet) X

Baghiben

Halliford Corporation expects to have earnings this coming year of $2.879 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 48% of its earnings. It will retain 18% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 22.9% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 9.7%, what price would you estimate for Halliford stock? The stock price will be $. (Round to the nearest cent.)

The Podrasky Corporation is considering a $250 million expansion (capital expenditure) program next year. The company currently has $400 million in net fixed assets on its books. Next year, the company expects to earn $70 million after interest and taxes. The company also expects to maintain its present level of dividends, which is $20 million. If the expansion program is accepted, the company expects its inventory and accounts receivable each to increase by approximately $25 million next year. Long-term debt retirement obligations total $9 million for next year, and depreciation is expected to be $75 million. The company does not expect to sell any fixed assets next year. The company maintains a cash balance of $5 million, which is sufficient for its present operations. If the expansion is accepted, the company feels it should increase its year-end cash balance to $7 million because of the increased level of activities. For planning purposes, assume no other cash flow changes for next…