What is the firms pro forma net income assuming the basic


A firm had sales of $4,000,000 last year. The cost of goods sold was 75% of sales and the firm’s SGA was 10% of sales. The firm had $10 million of debt with a coupon of 5% and the tax rate is 30%. If depreciation is expected to be $100,000 next year and sales grow 15%, what is the firm’s pro forma net income assuming the basic structure of earnings remains the same.

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Financial Management: What is the firms pro forma net income assuming the basic
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