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A company requires $18.80 million in new assets to sustain its current level of growth. The firm forecasts $26.80 million of net income and investors
A company requires $18.80 million in new assets to sustain its current level of growth. The firm forecasts $26.80 million of net income and investors expect a $13.80 million dividend. Since the company does not want any new equity, how much new debt must the company issue to meet its objectives? (a). 5.80 million (b). $7.80 million . $11.60 million (d). $17.4 million
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To calculate the new debt the company needs to issue we can use the equation New Assets Net Inco...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
