Question: Based on the interest rate on debt, how much more interest will the firm pay in 2014? (Assume that all new debt is issued at

Based on the interest rate on debt, how much more interest

Based on the interest rate on debt, how much more interest will the firm pay in 2014? (Assume that all new debt is issued at first of year)

(The firm pays 6.00% annual interest on their outstanding debt.)

ASSUME that the firm will not issue any new shares.

A firm reports net income of $471,425.00 for 2013. The firm has a dividend payout ratio of 21.00 %. The firm currently has $945,225.00 in debt, and $1,883,800.00 in shareholder equity The firm pays 6.00% annual interest on their outstanding debt. If the firm wants to maintain its same debt-to-equity ratio, how much debt can the firm issue in the coming year IF the firm will not issue any new shares

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