BUSM401 HW 3

BUSM401 HW 3 - 1,281 Shareholders' equity 2,212 2,441...

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Ottawa Corporation Financial Statements, 2006 and Projected 2007 ($ millions) INCOME STATEMENT BALANCE SHEET Actual Projected Actual Projected 2006 2007 2006 2007 Sales $3,500 $4,008 Cash $150 $172 COGS 2,775 2,986 A/R 540 618 Operating expense 360 401 Inventory 1,050 1,202 EBIT 365 621 Total current assets 1,740 1,992 Interest expense 68 80 1,578 1,807 EBT 297 542 Total Assets 3,318 3,799 Tax 102 190 Net income $195 $352 Total debt 1,106
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Unformatted text preview: 1,281 Shareholders' equity 2,212 2,441 Assumptions for 2007 Total liabilities & equity $3,318 $3,722 Sales growth rate 14.50% COGS/sales 74.5% Oper. Exp./sales 10.0% External funding required 77 Dividend payout ratio 35.0% Sustainable growth rate 10.34% Tax rate 35.0% Interest rate on debt 7.2% Profit Margin 0.09 Total debt/equity 52.5% Asset Turnover 1.05 Leverage 1.02 Retention 65.0%...
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This note was uploaded on 03/23/2011 for the course BUS M 401 taught by Professor Toddmitton during the Fall '10 term at BYU.

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