Calculating EFN Find the income statements and balance sheets for Huffy Corporation (HUF), the bicycle manufacturer. Assuming sales grow by 10 percent, what is the EFN for Huffy next year? Assume non-operating income/expense and special items will be zero next year. Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. Huffy will have the same tax rate next year as it does in the current year.
Internal and Sustainable Growth Rates Look up the financial statements for Emerson Electric (EMR) and Wal-Mart (WMT). For each company, calculate the internal growth rate and sustainable growth rate over the past two years. Are the growth rates the same for each company for the two years? Why or why not?
