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Analytical Methods Quiz 1 Study Guide 030711

Analytical Methods Quiz 1 Study Guide 030711 - Analytical...

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Analytical Methods in Finance Study Guide for Quiz 1 SHOW ALL OF YOUR WORK…STEP BY STEP Inputs Actual Projected Projected Projected Projected 2009 2010 2011 2012 2013 Sales Growth Rate 15% 10% 6% 6% Costs / Sales 72% 72% 72% 72% 72% Depreciation / Net PPE 10% 10% 10% 10% 10% Cash / Sales 1% 1% 1% 1% 1% Acct. Rec. / Sales 10% 10% 10% 10% 10% Inventories / Sales 20% 20% 20% 20% 20% Net PPE / Sales 75% 75% 75% 75% 75% Acct. Pay. / Sales 2% 2% 2% 2% 2% Accruals / Sales 5% 5% 5% 5% 5% Tax rate 40% 40% 40% 40% 40% Weighted average cost of capital (WACC) 10.5% 10.5% 10.5% 10.5% 10.5% Dividend Growth Rate 0.0% 0.0% 0.0% 0.0% Income Statement for the Year Ending December 31 (Millions of Dollars) 2009 2010 2011 2012 2018 Net Sales \$ 800.0 920.0 1,012.0 1,072.7 1,137.1 Costs (except depreciation) \$ 576.0 662.4 728.6 772.4 818.7 Depreciation \$ 60.0 69.0 75.9 80.5 85.3 Total operating costs \$ 636.0 731.4 804.5 852.8 904.0 \$ 164.0 188.6 207.5 219.9 233.1 Less interest \$ 32.0 32.0 32.0 32.0 32.0 Earning before taxes \$ 132.0 156.6 175.5 187.9 201.1 Taxes (40%) \$ 52.8 62.6 70.2 75.2 80.4 Net income before pref. div. \$ 79.2 94.0 105.3 112.7

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Analytical Methods Quiz 1 Study Guide 030711 - Analytical...

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