Reference no: EM133125011
Question - When determining the next financial? year, you forecast a net income of $49,300and ending assets of ?$501,100.
Your? firm's payout ratio is 10.3?%.
Your beginning? stockholders' equity is ?$299,700?, and your beginning total liabilities are ?$123,700.
Your? non-debt liabilities such as accounts payable are forecasted to increase by ?$10,500.
Assume your beginning debt is $103,700.
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?
What will the amount of debt to issue be?
What will be the amount of equity?