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Your firm has an ROE of 11.2%, a payout ratio of 24%, $586, 300 of stockholders' equity, and $356,000 of debt. If you grow at
Your firm has an ROE of 11.2%, a payout ratio of 24%, $586, 300 of stockholders' equity, and $356,000 of debt. If you grow at your sustainable growth rate this year, how much additional debt will you need to issue? The sustainable growth rate is %. (Round to three decimal place.) The ending total assets at the sustainable growth rate will be $ (Round to the nearest dollar.) Because the firm grew at its sustainable growth rate, its debt/equity ratio remains constant at 0.607198 and the debt-to-assets ratio will be 0.377799. Thus, the new debt in the capital structure will be 0.377799 times $1, 022, 509 = $386, 303. Since the firm started at $356,000, it will issue about $30, 303 in additional debt. ls the above statement true or false
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