For the next fiscal year, you forecast net income of $50,900 and ending assets of $507,100. Your firm's payout ratio is 9.7%. Your beginning stockholders' equity is $295,800 and your beginning total liabilities are $119,200. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,700. What is your net new financing needed for next year?The Tax Cuts and Jobs Act of 2017 temporarily allowed 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems.Question content area bottomPart 1The net financing required will be $
For the next fiscal year, you forecast net income of $50,900 and ending assets of $507,100. Your firm's payout ratio is 9.7%. Your beginning stockholders' equity is $295,800 and your beginning total liabilities are $119,200. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,700. What is your net new financing needed for next year?The Tax Cuts and Jobs Act of 2017 temporarily allowed 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems.Question content area bottomPart 1The net financing required will be $
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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For the next fiscal year, you forecast net income of $50,900 and ending assets of $507,100. Your firm's payout ratio is 9.7%. Your beginning
The Tax Cuts and Jobs Act of 2017 temporarily allowed 100% bonus
Question content area bottom
Part 1
The net financing required will be $
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