Simple Pro Forma Data Tables

# Simple Pro Forma Data Tables - Tax Rate Interest Rate...

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Tax Rate 0.34 Create a Pro Forma Model with the following Assumptions: Interest Rate 0.10 Cost of Good Sold is a Percent of Sales Dividend Growth Rate 0.02 SG&A is a Percent of Sales Sales Growth Rate 0.10 Depreciation is a percent of Property, Plant and Equipment (PPE) COGS % Rate 0.42 Dividends are a percent of Net Income SG&A % Rate 0.33 Balance Sheet: Depr Rate 0.10 Cash is a percent of Sales Dividend Payout 0.33 Other Current Assets is a Percent of Sales Cash % 0.33 PPE is a Percent of Sales Other Current Assets 0.67 Current Liabilities is a Percent of Sales PPE % 0.67 Use Financing Needed to Balance Balance Sheet Current Liabs % 0.30 Base Case YR 1 YR 2 YR 3 YR 4 YR 5 Sales 300 COGS 125 SG&A 100 Depr 20 EBIT 55 Taxes 15 Net Income 29 Dividends 10 Balance Sheet Cash 100 Other Current Assets 200 PPE 200 Total Assets 500 Current Liabilities 90 Debt 110 Equity Common Stock 100 Retained Earnings 200 Total Liabs + OE 500 Financing Needed

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Tax Rate 0.34 Interest Rate 0.10 Assume that the firm will not issue new equity. Dividend Growth Rate 0.02 Therefore, Debt becomes a plug in this model Sales Growth Rate 0.10 Get rid of financing needed and use a formula so that debt "balances" your balance sheet. COGS % Rate 0.42 In a model like this, debt is called a "Plug" SG&A % Rate 0.33 A corporation might use this model to determine whether it will need to issue more debt over the next several years. Depr Rate 0.10 Dividend Payout 0.33 Cash % 0.33 Other Current Assets 0.67 PPE % 0.67 Current Liabs % 0.30 Base Case YR 1 YR 2 YR 3 YR 4 YR 5 Sales 300 330 363 399 439 483 COGS 125 139 152 168 184 203 SG&A 100 109 120 132 145 159 Depr 20 22 24 27 29 32 EBIT 55 60 66 73 80 88 Taxes 15 21 23 25 27 30 Net Income 29 40 44 48 53 58 Dividends 10 13 14 16 18 19 Balance Sheet Cash 100 109 120 132 145 159 Other Current Assets 200 221 243 268 294 324 PPE 200 221 243 268 294 324 Total Assets 500 551 606 667 734 807 Current Liabilities 90 99 109 120 132 145 Debt 110 110 110 110 110 110 Equity Common stock 100 100 100 100 100 100 Retained earnings 200 227 256 288 324 363 Total Liabs + OE 500 536 575 618 666 718 Add'l Financing Needed 15 31 49 68 89 Total 551 606 667 734 807
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