Sales $1000

Operating cost 800

EBIT 200

Interest 15

EBT 185

tax 40%

Net Income 111

Dividends 60%

Addition to RE 44.40

Current Assets 700

NFA 300

Total Assets 1000

A/P and Accruals 150

notes payable 100

L-T Debt 200

Common stock 150

RE 400

Total L&E 1000

Expected Sales 40% in the next year and operating costs should increase in proportion to sales. Fixed assets were being operated at 80% capacity. Current assets and spontaneous liabilities should increase in proportion to sales during the next year. The company plans to finance any external funds needed as follow L-T Debt 60% and S-T Debt 40%. The interest rate is 7%. Dividend payout will remain constant. Using the forecasted financial method, what is the next year's interest expense? Next Year net fixed assets? What is the AFN? What is the next year ROE?