Kaplan GB550 unit 6 assignment

• Complete Chapter 12 question, 12-1, p. 514

Question 12-1

Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2013 current liabilities were $1.4 million, consisting of $450,000 accounts payable, $500,000 of notes payable and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year.

• Complete Chapter 15 problem, 15-3, p. 621

Problem 15-3: Either Enterprises Premium for Financial Risk

Unlevered beta of 1.0

Financed with 50% debt

Levered beta of 1.6

R_RFis 5.5%

R_RPis 6%

Additional premium required by stockholders for financial risk: solve

Prepare this Assignment as a Word document. List each question, followed by your answer.