Financial Planning and Forecasting(英文版)(ppt 31页)

Financial Planning and Forecasting(英文版)内容提要：
Assumptions about How AFN Will Be Raised
The payout ratio will remain at 30 percent (d = 30%; RR = 70%).
No new common stock will be issued.
Any external funds needed will be raised as debt, 50% notes payable and 50% L-T debt.
Equation AFN = $181 vs. $179.  Why different?
Equation method assumes a constant profit margin, a constant dividend payout, and a constant capital structure.
Financial statement method is more flexible.  More important, it allows different items to grow at different rates.
How would excess capacity affect the forecasted ratios?
1.Sales wouldn’t change but assets would be lower, so turnovers would be better.
2.Less new debt, hence lower interest, so higher profits, EPS, ROE (when financing feedbacks considered).
3.Debt ratio, TIE would improve.

..............................