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Part b: the amount of debt to issue would be? For the next fiscal year, you forecast net income of $49,800 and ending assets of
Part b: the amount of debt to issue would be?
For the next fiscal year, you forecast net income of $49,800 and ending assets of $509,900. Your firm's payout ratio is 10.5%. Your beginning stockholders' equity is $297,900, and your beginning total liabilities are $128,600. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assume your beginning debt is $108,600. 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 amount of debt to issue will be $ (Round to the nearest dollar.)Step by Step Solution
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