Exercisessolutio
stoch3
31
Firstwe
eedtofi
dthecha
gei
SalesSProjectedSalesare110110ofcurre
tsalessocurre
tsalesare
S330millio
110300millio
a
dS300millio
×1030millio

a
Forexter
alfu
ds
eededi
millio
susi
gtheformulafromthebook
DebtAssetsΔSalespProjectedSales1dSalesSalesSales
25150×304045×3012×330140324millio

b
Curre
tassets25×33011075Fixedassets150×330110450TotalassetsCurre
tassetsFixedassets75450525millio
Shorttermdebt40×330110120Lo
gtermdebt45×330110135Commo
stock50Accumulatedretai
edear
i
gs52512013550220
FloristCompa
y
Curre
tBala
ceSheeti
millio
sAssetsCurre
tassetsFixedassetsLiabilitiesa
dequityShorttermdebtLo
gtermdebtTotalliabilitiesStockholdersequityCommo
stockAccumulatedRetai
edear
i
gsTotalstockholdersequityTotalliabilitiesa
dequity
75450
120135255
Totalassets
525
50220270525
c
ProFormaBala
ceSheet
fCurre
tassets25×330825Fixedassets150×330495Totalassets5775millio
Shorttermdebt40×330132Lo
gtermdebt45×3301485Commo
stock50AccumulatedRetai
edear
i
gs22012×33014024376Exter
alfu
ds
eeded5775（13214855024376）324millio

FloristCompa
y
ProformaBala
ceSheeti
millio
sAssetsCurre
tassetsFixedassetsLiabilitiesa
dequityShorttermdebtLo
gtermdebtTotalliabilitiesStockholdersequityCommo
stockAccumulatedRetai
edear
i
gsTotalstockholdersequityExter
alfu
ds
eededTotalliabilitiesa
dequity
825495
13214852805
Totalassets
5775
5024376293763245775
32
aComputethesustai
ablegrowthrateusi
gtheformulaTRatiooftotalassetstosalessoTotalassetstur
over1TLDebtequityratiosoEquitymultipliertotalassetstotalequityL11L1dDivide
dpayoutratiosoRete
tio
rateb1d
fSustai
ablgrowthreate
ROEb1ROEbProfitmargi
Totalassetstur
oveEquitymulrtiplierb1Profitmargi
Totalassetstur
oveEquitymulrtiplierb111Profitmargi
Totalassetstur
oveEquitymulrtiplierb1111PL11dT111512150526
b
Stiebe
Compa
yca
i
creaseitssustai
ablegrowthratebydoi
ga
yofthefollowi
g
Sustai
ableGrowthRateP11
1L11dT1T1PL11d
1
iI
creaseitsdebttoequityratioLbyeitherissui
gmoredebtorrepurchasi
gstockiiI
creaseits
etprofitmargi
PiiiDecreaseitstotalassetstosalesratioTivReduceitsdivide
dpayoutd
r