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Ch12 P10 Build a Model - Chapter 12 Ch 12-10 Build a Model...

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Chapter 12. Ch 12-10 Build a Model a. What are the forecasted levels of notes payable and special dividends? Key Input Data: Used in the forecast Tax rate 40% Dividend growth rate 8% 9% 11% December 31 Income Statements: (in thousands of dollars) Forecasting 2010 2011 2011 2010 basis Ratios Inputs Forecast Sales $455,150 Growth Expenses (excluding depr. & amort.) $386,878 % of sales EBITDA $68,273 Depreciation and Amortization $14,565 % of fixed assets EBIT $53,708 Net Interest Expense $11,880 Interest rate x beginning of year debt EBT $41,828 Taxes (40%) $16,731 Net Income $25,097 Common dividends (regular dividends) $12,554 Growth 8.00% Special dividends Addition to retained earnings (DRE) $12,543 December 31 Balance Sheets (in thousands of dollars) Forecasting 2010 2011 2011 2010 basis Ratios Inputs Without AFN AFN Assets: Cash $18,206 % of sales Accounts Receivable $100,133 % of sales Inventories $45,515 % of sales Total current assets $163,854 Fixed assets $182,060 % of sales Total assets $345,914 Liabilities and equity Accounts payable $31,861 % of sales Accruals $27,309 % of sales Notes payable $0 Previous Total current liabilities $59,170 Long-term debt $120,000 Previous
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