For the next fiscal year, you forecast net income of $51,200 and ending assets of $504,400. Your firm's payout ratio is 9.7%. Your beginning stockholders' equity is $295,600 and your beginning total liabilities are $119,100. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,600. Assume your beginning debt is $106,600.

What amount of equity would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?

What amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?