Question: d. Matthewss management realizes that interest for additional notes payable should be included in the analysis. Assume that notes will be issued midway through the
d. Matthews’s management realizes that interest for additional notes payable should be included in the analysis. Assume that notes will be issued midway through the year, so that interest on these notes is incurred for only half the year. If Matthews assumes now that external financing is achieved through notes payable and if financing feedbacks are considered, then what are the firm’s forecasted AFN, EPS, DPS, and year-end stock price under each scenario?
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