The most recent financial statements for Scott, Inc., appear
below. Interest expense will remain constant; the tax rate and the
dividend payout rate also will remain constant. Costs,
other expenses, current assets, fixed assets, and accounts payable
increase spontaneously with sales. Assume the firm is operating at
full capacity and the debt-equity ratio is held constant.
Complete the pro forma income statements below. (Do
not round intermediate calculations. Round your answers to the
nearest whole dollar amount.)
Calculate the EFN for 10, 15 and 40 percent growth
rates. (A negative answer should be indicated by
a minus sign. Do not round intermediate calculations and round your
answers to the nearest whole dollar amount.)
The most recent financial statements for Scott, Inc., appear below. Interest expense will remain constant; the tax rate
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