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A firms time 0 balance sheet showed long-term debt of $1,500, common stock of $300, and paid in surplus of $4,600. At time 1, it
A firms time 0 balance sheet showed long-term debt of $1,500, common stock of $300, and paid in surplus of $4,600. At time 1, it had long-term debt of $1,800, common stock of $350, and paid in surplus of $5,000. In period 1, the firm had an interest expense of $210 and paid all its net income of $100 as dividends.
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