Question: Hey can someome help me out with this problem i need parts 1-2 for this one. can you also show work please and thank you!
For the next fiscal year, you forecast net income of $49,700 and ending assets of $504,700. Your firm's payout ratio is 9.6%. Your beginning steckholders' equity is $300,000 and your beginning total liabilities are $119,900. Your non-debt liabilties such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $107,300. 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? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures) However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The amount of equity to issue will be s (Round to the nearest dollar.)
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