For the next fiscal year, you forecast net income of

$ 49 comma 900$49,900

and ending assets of

$ 503 comma 000$503,000.

Your firm's payout ratio is

10.2 %.10.2%.

Your beginning stockholders' equity is

$ 296 comma 700$296,700

and your beginning total liabilities are

$ 119 comma 900$119,900.

Your non-debt liabilities such as accounts payable are forecasted to increase by

$ 10 comma 000$10,000.

Assume your beginning debt is

$ 107 comma 300$107,300.

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?

The Tax Cuts and Jobs Act of 2017 temporarily allows 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 amount of equity to issue will be

$nothing.

(Round to the nearest dollar.)