Use Spreadsheet 18 1 to answer the following questions about Executive Fruit a What would be the required external financing if the growth rate is 15 and the dividend payout ratio is 60 b Given the assumptions in part (a), what would be the amount of debt and equity issued if the firm wants to main...

a The spreadsheet solution incorporates the following changes from Spreadsheet 181 The ...

Use Spreadsheet 18.1 to answer the following questions about Executive Fruit. a. What would be the required

Question:

Use Spreadsheet 18.1 to answer the following questions about Executive Fruit.
a. What would be the required external financing if the growth rate is 15% and the payout ratio is 60%?
b. Given the assumptions in part (a), what would be the amount of debt and equity issued if the firm wants to maintain its debt-equity ratio at a level of 2/3?
c. What formulas would you put in cells H20 and H21 (as well as the corresponding cells in columns F and G) of Spreadsheet 18.1 to maintain the debt-equity ratio at 2/3 while forcing the to balance (that is, forcing debt + equity = total assets)?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...