The financials for Dilworth Corp.

by | Oct 10, 2021 | Finance

The financials for Dilworth Corp.

  1. Estimate the EFN for 2021, assuming a sales growth rate of 10%. Make sure to use ONLY the “Direct Method”, NOT the “Auto Calc [with highlighted
    interest]” method.
  2. Assume that the company has an excess capacity as of the end of 2020, with a capacity utilization of 90%. Re-estimate EFN for 2021 (sales growth rate of
    10%) given this excess capacity.
    Assume that the dividend payout ratio remains the same for 2021. Also, note that the numbers are all in thousands of dollars.

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