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For the next fiscal year, you forecast net income of $49,500 and ending assets of $509,200. Your firm's payout ratio is 10.5%. Your beginning stockholders'
For the next fiscal year, you forecast net income of $49,500 and ending assets of $509,200. Your firm's payout ratio is 10.5%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $119,500. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $102,500. 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?
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