How much external financing is needed

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Reference no: EM132041438

To increase production capacity by 20%, a $3 million investment is needed. The firm wants to maintain a 40% debt-to-asset ratio, and continue to pay 75% of income as dividends. Net Income was $4 million.

How much External Financing is needed?

How much new Debt must they Issue?

How much new external equity should they issue?

Reference no: EM132041438

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