Q24

A firm reports net income of $452,600.00 for 2013. The firm has a dividend payout ratio of 20.00%. The firm currently has $994,325.00 in debt, and $1,911,600.00 in shareholder equity. The firm pays 6.00% annual interest on their outstanding debt. The firm wants to maintain its debt to equity ratio. Based on the interest rate on debt, how much more interest will the firm pay in 2014? (Assume that all new debt is issued at first of year) (The firm pays 6.00% annual interest on their outstanding debt.) ASSUME that the firm will not issue any new shares. Submit Answer format: Currency: Round to: 2 decimal places