Question: Suppose that in 2 0 2 2 , sales increase by 1 4 % over 2 0 2 1 sales. The firm currently has 1
Suppose that in sales increase by over sales. The firm currently has shares outstanding. It expects to maintain its dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would like to reduce its operating costssales ratio to and increase its total liabilitiestoassets ratio to It believes its liabilitiestoassets ratio currently is too low relative to the industry average. The firm will raise of the forecasted interestbearing debt as notes payable, and it will issue longterm bonds for the remainder. The firm forecasts that its beforetax cost of debt which includes both short and longterm debt is Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $Suppose that in sales increase by over sales. The firm currently has shares outstanding. It expects to maintain its dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would like to reduce its operating costssales ratio to and increase its total liabilitiestoassets ratio to It believes its liabilitiestoassets ratio currently is too low relative to the industry average. The firm will raise of the forecasted interestbearing debt as notes payable, and it will issue longterm bonds for the remainder. The firm forecasts that its beforetax cost of debt which includes both short and longterm debt is Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $ PLEASE FILL OUT THE GREEN SPACES
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