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e Your firm has an ROE of 116% payout ratio of 25% 5558 300 of stockholders' equity, and $362.000 of dett. If you grow at

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e Your firm has an ROE of 116% payout ratio of 25% 5558 300 of stockholders' equity, and $362.000 of dett. If you grow at your sustainable growth rate this year , how much additional debt will you need to issue? The Tax Cuts and Jobs Act of 2017 mporarily wows 100% bonus depreciation (effectively expensing capital expenditures) However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The sustainable growth rate is 8.700 (Round to three decimal place) The ending total assets at the sustainable growth rate will be $ 1000386 (Round to the nearest dollar) Because the form grew at its sustainable growth rate, its debt/equity rato remains constant at 0.648397 and modebt 10-assets ratio will be 0.39335. Thus the new dett in the capital structure will be 0.30335x51 000 3665893 494 Since the firm started at $362,000, it wil is about 531,494 in additional debt is the above statement two or to? (Select from the drop down menu)

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