What will net income be next year how much new stock will


You are expected Sales to increase next year by 10% off of a base of $7,000 this year. Net Income this past year was $600. Assets were 11,000 this year, and the Sales/Assets ratio will remain constant next year. Debt this past year was at 3,500, and the Debt/Equity ratio will remain constant for the next year. No debt will be retired and no stock will be retired. No Dividends will be given out.

1 What will Sales be next year?

2 What will Net Income be next year?

3 What will Assets be next year?

4 How much new debt will be issued next year?

5 How much new stock will be issued next year?

6 Risk free rate is 2%. Equity Risk Premium is 6%. Beta is 1.5. What is the equity cost of capital?

7 Debt/Equity is 0.45. Risk free rate is 3%. Beta is 2.0 Equity Risk Premium is 7%. Cost of debt before tax adjustment is 5.5% corporate tax rate is 40% What is the Weighted Average Cost of Capital (WACC)?

8 Debt/Equity is 2.75 Risk free rate is 3.5% Beta is 4.25 Equity Risk Premium is 6.5% Cost of debt before tax adjustment is 6%corporate tax rate is 35% What is the Weighted Average Cost of Capital (WACC)?

9 Debt/Equity is 2.0 Risk free rate is 3.75% Beta is 3.0 Equity Risk Premium is 6% Cost of debt before tax adjustment is 7% corporate tax rate is 40% What is the Weighted Average Cost of Capital (WACC)?

10 Debt/Equity is 0.25 Risk free rate is 3.75% Beta is 3.0 Equity Risk Premium is 7% Cost of debt before tax adjustment is 8% corporate tax rate is 38% What is the Weighted Average Cost of Capital (WACC)?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What will net income be next year how much new stock will
Reference No:- TGS02370886

Expected delivery within 24 Hours