Financing in order to keep your debt-equity ratio constant

Assignment Help Financial Management

Reference no: EM131875748

For the next fiscal year, you forecast net income of $49,500 and ending assets of $509,200. Your firm's payout ratio is 10.5%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $119,500. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $102,500. 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?

Reference no: EM131875748

Questions Cloud

Seasonal working-capital needs with short-term bank loan : Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a?short-term bank loan.

What is the net present value of project with cash flows : What is the net present value of a project with the following cash flows if the discount rate is 15 percent? What is the internal rate of return?

Determine the amount of interest expense : Ellen Crawley owns a small restaurant in New York City. Determine the amount of interest expense the restaurant will report on June pro forma income statement

Explain what theories do you think will be most applicable : Explain what Theories, Research Findings, Concepts, or other Knowledge in your Field(NURSING) do you think will be most applicable to you as a volunteer?

Financing in order to keep your debt-equity ratio constant : what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?

Provide a forecast for the next five years : Complete the financing portion of the Panera Bread Company's 2007 forecast financial statements, and provide a forecast.

Prepare an inventory purchase budget : Executive officers of Shavez Company are wrestling with their budget for next year. Prepare an inventory purchase budget using the sales manager's estimate

Explain what difficulties or challenges do you anticipate : Explain what Difficulties or Challenges do you anticipate as you prepare your Journal entries throughout this course?

Show aardvark balance sheet presentation for accounts : Show Aardvark's balance sheet presentation for accounts and notes receivable at December 31, 2005. Prepare journal entries for each of these events

User Account

All Pages