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Show steps please. Q Your rm has an ROE of 12.2%, a payout ratio of 25%, $522,800 of stockholdersr equity, and 15421000 of debt if

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Q Your rm has an ROE of 12.2%, a payout ratio of 25%, $522,800 of stockholdersr equity, and 15421000 of debt if you grow at your sustainable growth rate this year, how much additional debt will you need to issue? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (eecvely expensing capital expenditures]. However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the retum of standard depreciation practices dun'ng your career. The sustainable growth rate is D05. (Round to three decimal place.) The ending total assets at the sustainable growth rate will be Sum. (Round to the nearest dollar.) Because the rm grew at its sustainable growth rate, its debtlequityl ratio remains constant at 13.535513 and the debttoassets ratio will be 0.405T44. Thus, the new debt in the capital structure will be 0.406744 x $1,145,357 = $456,030. Since the rm started at $421001], it will issue about $39,0?0 in additional debt. Is the above statement true or false? E. (Select from the drop-down menu.)

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