Question
For the next fiscal year, you forecast net income of $48,000 and ending assets of $508,000. Your firm's payout ratio is 10.4%. Your beginning stockholders'
For the next fiscal year, you forecast net income of
$48,000
and ending assets of
$508,000.
Your firm's payout ratio is
10.4%.
Your beginning stockholders' equity is
$296,700,
and your beginning total liabilities are
$120,700.
Your non-debt liabilities such as accounts payable are forecasted to increase by
$10,300.
Assume your beginning debt is
$100,700.
What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?
Q1: The amount of debt to issue will be $ (Round to the nearest dollar.)
Q2: What is the amount of Equity to be issued $
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