eng111_HW2

eng111_HW2 - ENG 111 HW2 Winter 2009 Note: 1. Put your...

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ENG 111 HW2 Winter 2009 Note: 1. Put your name, id number, section number on top of your solutions. 2. Submit your solution in electronic format in .pdf or .doc. 3. You may not scan the handwritten solutions; all submissions must be typed. 4. Plagiarism is strictly prohibited. 5. Due at 11:59 pm, 02/05/2009. No Late Submissions Q1. Sustainable Growth. If the Layla Corp. has a 15 percent ROE and a 20% payout ratio, what is its sustainable growth rate? Q2. Calculating EFN. Given the most recent financial statements for Bradley, Inc. Assume assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be 5,500. (1) Construct its pro forma balance sheet and income statement. (2) What is the external financing needed? ----------- Income Statement: Sales 4,400 Costs 2,685 Net income 1,715 ----------- Balance sheet Assets 13,400 Total Asset 13,400 - Debt 9,100 Equity 4,300 Total Debt and Equity 13,400 ------------ Q3. External Funds Needed. The Optical Scam Company has forecast a 22% sales
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eng111_HW2 - ENG 111 HW2 Winter 2009 Note: 1. Put your...

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