asked 42.1k views
21 votes
A firm reports net income of $456,325.00 for 2013. The firm has a dividend payout ratio of 20.00%. The firm currently has $994,000.00 in debt, and $1,628,000.00 in shareholder equity. The firm pays 6.00% annual interest on their outstanding debt. The firm wants to maintain its debt to equity ratio. Based on the interest rate on debt, how much more interest will the firm pay in 2014

asked
User Manchego
by
8.1k points

1 Answer

8 votes

Answer:

$433,550.00

Step-by-step explanation:

let me know if I'm wrong

answered
User Mockash
by
8.4k points
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