Your firm has an ROE of 12%, a payout ratio of 25%, $600,000 of stockholders equity, and

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Your firm has an ROE of 12%, a payout ratio of 25%, $600,000 of stockholders’ equity, and $400,000 of debt. If you grow at your sustainable growth rate this year, how much additional debt will you need to issue?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:16 AM

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Your firm has an ROE of 12%, a payout ratio of 25%, $600,000 of stockholders equity, and

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Fundamentals of Corporate Finance

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