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Assignment | Financial Management

   

Added on  2020-05-08

6 Pages821 Words68 Views
Running head: FINANCIAL MANAGEMENT ASSIGNMENT 2Financial management assignment 2Name of the studentName of the universityAuthor note
Assignment | Financial Management_1
1FINANCIAL MANAGEMENT ASSIGNMENT 2Table of ContentsQuestion 1..................................................................................................................................2(a)Pro-forma income statement for the years 2017 – 2021..............................................2(b)Additional financing required –...................................................................................2(c)Pro-forma balance sheet for the years 2017 – 2021....................................................2Question 2..................................................................................................................................3Question 3..................................................................................................................................3Question 4..................................................................................................................................3(a)Calculation for cost of equity......................................................................................3(b)After tax cost of the debt.............................................................................................3(c)Weighted average cost of capital (WACC).................................................................3(d)Net present value.........................................................................................................4Bibliography...............................................................................................................................5
Assignment | Financial Management_2
2FINANCIAL MANAGEMENT ASSIGNMENT 2Question 1(a)Pro-forma income statement for the years 2017 – 2021 Particular201620172018201920202021Sales revenue2200264031683801.604561.925474.30Costs20552428.82914.563497.474196.975036.36Depreciation 2052.283.14118.4396.48149.39EBIT125159170.30185.70268.47288.56Interest53339.6047.5257.0268.43Tax606365.3569.09105.72110.06Net income 606365.3569.09105.72110.06Less: Dividend3637.839.2141.4563.4366.04Retained earnings2425.226.1427.6442.2944.03(b)Additional financing required –YearAmount201733020183962019475.22020570.242021684.29(c)Pro-forma balance sheet for the years 2017 – 2021Particulars201620172018201920202021Net working capital190290.40348.48418.18501.81602.17Fixed assetGross fixed asset350250.00527.80840.66501.81975.57investment in fixed asset330.00396.00475.20570.24684.29Less: accumulated depreciation10052.2083.14118.4396.48149.39Net fixed asset250527.80840.661197.43975.571510.47Total net assets440818.201189.141615.611477.382112.64LiabilitiesLong term debt90330.00396.00475.20570.24684.29Net worth350488.20793.141140.41907.141428.35Long term liabilities and net 440818.201189.11615.61477.32112.6
Assignment | Financial Management_3

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