18.1 Total assets will rise to $2,200. The debt-equity ratio is to be maintained at . Therefore, debt rises by $80 to $880, and equity rises by $120 to $1,320. Net income will be $220. (See Table 18-2.) If the dividend is fixed at $180, reinvested earnings will be $40. Therefore, the firm needs to issue $120-$40 - $80 of new equity and $80 of new debt.