Estimating the amount of debt

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1) For the next fiscal? year, you forecast net income of ?$50,000 and ending assets of ?$501,600. Your? firm's payout ratio is 10.9?%. Your beginning? stockholders' equity is ?$298,100?, and your beginning total liabilities are ?$129,700. Your? non-debt liabilities such as accounts payable are forecasted to increase by ?$10,500. Assume your beginning debt is ?$109,700. 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?

2) The table below gives a detailed forecast of the size of the market by production volume. Assume that KXS expects to capture 10.00% of the market share in 2018 and expects that percentage will increase by 0.23% per year. KXS currently has the capacity to produce a maximum of 1100 thousand units. What production capacity will KXS require each? year? When will an expansion become necessary? (that is, when will production volume exceed 1100 thousand? units)?

Year Market Size

2018 - 10,000

2019- 10,449

2020- 11,068

2021- 11,513

2022-12,108

2023- 12,703

KXS's market share for 2018? 2019? 2020? 2021? 2022? 2023?

 

Reference no: EM132648792

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