1. Please assess the current financial health and recent financial performance of Astral Records. What strengths or weaknesses would you highlight to Sarah Conner? 2. Please forecast the financial statements of Astral for 1994 and 1995. What will be the external financial requirements of the firm in those years? In your opinion, can the company repay its loan within a reasonable period? 3. What is Astral’s WACC? Explain the methods and assumptions you used to complete your estimation of the WACC. 4. What are the free cash flows of the packaging-machine investment? In your opinion, should Conner approve the investment?

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)