for the next fiscal year, you forecast net income of $48,000 and ending assets of $503,000. Your firm's payout ratio is 10.4%. Your beginning stockholders 295,800, and your beginning total liabilities are $122,900. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assu eginning debt is $102,900. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your atio constant? The amount of debt to issue will be $ 19,176. (Round to the nearest dollar.) The amount of equity to issue will be $ 12,116. (Round to the nearest dollar.)
for the next fiscal year, you forecast net income of $48,000 and ending assets of $503,000. Your firm's payout ratio is 10.4%. Your beginning stockholders 295,800, and your beginning total liabilities are $122,900. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assu eginning debt is $102,900. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your atio constant? The amount of debt to issue will be $ 19,176. (Round to the nearest dollar.) The amount of equity to issue will be $ 12,116. (Round to the nearest dollar.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:For the next fiscal year, you forecast net income of $48,000 and ending assets of $503,000. Your firm's payout ratio is 10.4%. Your beginning stockholders' equity is
$295,800, and your beginning total liabilities are $122,900. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assume your
beginning debt is $102,900. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity
ratio constant?
The amount of debt to issue will be $ 19,176. (Round to the nearest dollar.)
The amount of equity to issue will be $ 12,116. (Round to the nearest dollar.)
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