Construct a pro forma income statement for the first year and second year for the following assumptions: • Units of Sales in Year 1: 110,000 • Price per Unit: $11 • Variable cost per unit: 30% • Fixed Costs: $125,000 • Income taxes: 15% • Interest Expense: $200,000 • In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same. Calculate the sustainable growth based on the following information: D= 30% ROE = 25% Calculate a table of interest rates for 5 years based on the following information: • The pure interest rate is 2% • Inflation expectations for year 1 = 3%, year 2 =4%, years 3-5 =5% • The default risk is .1% for year one and increases by .1% over each year • Liquidity premium is 0 for year 1 and increases by .2% each year • Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5.