Question 1The “Question 1” tab of the spreadsheet contains the most recent (“Year 0”) income...

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Question 1The “Question 1” tab of the spreadsheet contains the most recent (“Year 0”) income statement for Thestral Corporation. You’ll need to forecast the next 5 years of the income statement (including the Free Cash Flow) using the following assumptions: •Sales will grow by 9% each year. •COGS and SG&A will be forecast using the percent of sales technique.• Depreciation will grow by 7% each year.• Interest expense will grow by 12% each year.• Thestral’s tax rate is 27%. • CapEx and Change in NWC will grow by 14% each year.Question 2Compute the most recent value of the 10 ratios covered in my notes for Verizon (Ticker: VZ). Then compute the Altman Z-Score. You can use any financial website (I primarily use Yahoo Finance, but feel free to explore other sites).(Note: because this is a real company, it’s not always simple to find each item. You may want to use google, the class message boards, etc. as you work on this.)

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Question 1
	Thestral Corporation
		Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
	Sales	$   25,000,000	$   27,250,000	$   29,702,500	$   32,375,725	$   35,289,540	$   38,465,599
	Cost of Goods Sold	$   11,000,000	$   11,990,000	$   13,069,100	$   14,245,319	$   15,527,398	$   16,924,864
	Gross Profit	$   14,000,000	$   15,260,000	$   16,633,400	$   18,130,406	$   19,762,143	$   21,540,735
	Selling, General and Administrative Costs	$   4,500,000	$   4,905,000	$   5,346,450	$   5,827,631	$   6,352,117	$   6,923,808
	Depreciation	$   1,000,000	$   1,070,000	$   1,144,900	$   1,225,043	$   1,310,796	$   1,402,552
	Earnings Before Interest and Tax (EBIT)	$   8,500,000	$   9,285,000	$   10,142,050	$   11,077,733	$   12,099,229	$   13,214,376
	Interest Expense	$   600,000	$   672,000	$   752,640	$   842,957	$   944,112	$   1,057,405
	Earnings Before Tax	$   7,900,000	$   8,613,

Question 1 The “Question 1” tab of the spreadsheet contains the most recent (“Year 0”) income statement for Thestral Corporation. You’ll need to forecast the next 5 years of the income statement...

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