EFN Define the following:
S = Previous year’s sales
A = Total assets
D = Total debt
E = Total equity
g = Projected growth in sales
PM = Profit margin
b = Retention (plowback) ratio
Show that EFN can be written as:
EFN = ‒PM(S)b + [A ‒ PM(S)b] × g
Hint: Asset needs will equal A × g. The addition to retained earnings will equal PM(S)b × (1 + g).
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.