Foundation Rehearsal script

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Unformatted text preview: us money at favorable rates. What do we need to do for the Rehearsal? We have already issued stocks and bonds to cover plant purchases. However, we have not considered current debt or a dividend. 1. Examine your Proforma Balance sheet. 7 2. 3. 4. 5. Add together Inventory and Accts Receivable. These are current assets, and they should be funded by current liabilities. Current liabilities are the sum of Accts Payable and Current Borrowing. Calculate Inventory + Accts Receivable ‐ Accts Payable. Borrow the result on the Finance worksheet as new current debt in the “Borrow ($000)” cell. On the Finance worksheet, examine the “Earnings Per Share” cell under common stock. Assuming it is positive, how much of this do you wish to give to stockholders as a dividend? Suppose your answer is half. Enter half the EPS in the Dividend Per Share cell. Tactic 6: Inventing a new product What is this tactic about? Sometimes we want to invent new products. Perhaps we are replacing an old product, or p...
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This note was uploaded on 01/19/2014 for the course BA 101 taught by Professor Daseau during the Fall '06 term at Oregon.

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