1) For the next fiscalyear, you forecast net income of $50,000 and ending assets of $501,600. Yourfirm's payout ratio is 10.9%. Your beginningstockholders' equity is $298,100, and your beginning total liabilities are $129,700. Yournon-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $109,700. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep yourdebt-equity ratioconstant?

2) The table below gives a detailed forecast of the size of the market by production volume. Assume that KXS expects to capture 10.00% of the market share in 2018 and expects that percentage will increase by 0.23% per year. KXS currently has the capacity to produce a maximum of 1100 thousand units. What production capacity will KXS require eachyear? When will an expansion become necessary(that is, when will production volume exceed 1100 thousandunits)?

Year Market Size

2018 - 10,000

2019- 10,449

2020- 11,068

2021- 11,513

2022-12,108

2023- 12,703

KXS's market share for 2018? 2019? 2020? 2021? 2022? 2023?