Financing in order to keep your debt-equity ratio constant

Assignment Help Financial Management

Reference no: EM131969364

For the next fiscal year, you forecast net income of $49600 and ending assets of $506400. Your firm's payout ratio is 10.3%. Your beginning stockholders' equity is $299200 and your beginning total liabilities are $119800. Your non-debt liabilities such as accounts payable are forecasted to increase by $10400. Assume your beginning debt is $100200. 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: EM131969364

Questions Cloud

How do values of assets and liabilities of each bank change : If interest rate rises by 1%, how do the values of assets and liabilities of EACH bank change?

What is the percentage change in the bond price : If the market yield changes by 70 basis points, what is the percentage change in the bond's price?

Your expectations of exchange rate change : If you conduct a speculative trade on your expectations of exchange rate change.

Return investor receives from mutual fund investment : Discuss the components of the return an investor receives from a mutual fund investment.

Financing in order to keep your debt-equity ratio constant : 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?

Consider defined-benefit retirement plans : Consider defined-benefit retirement plans and defined-contribution retirement plans and document the primary characteristics of each.

With excess production sold on the spot market : The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market.

How many shares of stock must be outstanding : Looking at the financials for the good old XYZ Corp, in 2016 they had retained earnings balance of $7,933 million. how many shares of stock must be outstanding?

Today price of this bond compare to the issue price : How does today’s price of this bond compare to the issue price?

User Account

All Pages