Avarage Growth Rate (0.

72)

We used an avarage owth rate over the last four years to calculate the pro-forma income
statement and balance sheet. The average annual growth rate is (0.72). The growth rates for the
years 2022-2024 have been anticipated. In the pro-forma income statement components with the
average growth rate have been adjusted with (72%) and the exception of "financial cost" and
"financial income," which are plug variables, so they are directly related to sales. We updated all
of the assets in the pro-forma balance sheet by multiplying them by the average growth rate of
(0.72) and dividend payout ratio will be same as calculated. Assuming that they are all directly
related to sales, we just changed the current liabilities with the average growth rate on the
liability side, which are directly related with sales, and rest of the liabilities will remain constant
because they are not related with the sales. The increasing retain earnings of the particular year
will be added with the ending retain earnings of a particular year. Then we add all assets and
liabilities and equity. Then we deduct and calculate the external financial needed (EFN).

2022 2023 2024

EFN (1,754,256,643) (488,241,927) (135,886,719)

We can see there is huge influation of total assets compared to liabilities. In 2022, Bata will have
an extra 1,754,256,643 external finances, in 2023 there will be an extra 488,241,927 and in 2024
there will be an extra 135,886,719. In that case, Bata can clear high interest debt, repurchase
shares and increase dividend payment.
Growth Rate for Apex Foot’s:-

Avarage Growth Rate 0.19

We used an average growth rate over the last four years to calculate the pro-forma income
statement and balance sheet. The average annual growth rate is 0.19. The growth rates for the
years 2022-2024 have been anticipated. In the pro-forma income statement components with the
average growth rate have been adjusted with 19% and the exception of "financial cost" and
"financial income," which are plug variables, so they are directly related to sales. We updated all
the assets in the pro-forma balance sheet by multiplying them by the average growth rate of 0.19
and dividend payout ratio will be same as calculated. Assuming that they are all directly related
to sales, we just changed the current liabilities with the average growth rate on the liability side,
which are directly related with sales, and rest of the liabilities will remain constant because they
are not related with the sales. The increasing retain earnings of the particular year will be added
with the ending retain earnings of a particular year. Then we add all assets and liabilities and
equity. Then we deduct and calculate the external financial needed (EFN).

2022 2023 2024

EFN -5,236,918,500 -6,219,390,913 -7,386,180,124

We can see there is an excess of total assets compared to liabilities. In 2022, the company will
have an extra 5,236,918,50 external finances, in 2023 will have an extra 6,219,390,913 and in
2024 will have an extra 7,386,180,12. In that case, Apex can clear high interest debt, repurchase
shares and increase dividend payment.