A company requires $18.80 million in new assets to sustain its current level of growth. The firm forecasts $26.80 million of net income and investors expect a $13.80 million dividend. Since the company does not want any new equity, how much new debt must the company issue to meet its objectives? (a). 5.80 million (b). $7.80 million . $11.60 million (d). $17.4 million

Answer rating: 100% (QA)

To calculate the new debt the company needs to issue we can use the equation New Assets Net Inco... View the full answer