Question
The CFO of Runner Automobiles Limited wants to generate the adjusted forecasts of the company's financial statements, for that reason it is assumed that of
The CFO of Runner Automobiles Limited wants to generate the adjusted forecasts of the company's financial statements, for that reason it is assumed that of the total external funds needed, 50 percent will be raised by selling new common stock at BDT 10 per share, 30 percent will be borrowed from the bank at an interest rate of 9 percent, and 20 percent will be raised by selling long-term bonds with a coupon interest of 9.5 percent. The total external funds needed equals BDT 99,000,000. The company had 25,000,000 outstanding shares last year. The dividend per share was BDT 3.25, which will be the same next year. What are the company's additional interest expenses, number of additional shares, and amount of additional dividends? Interpret your answers.
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