How large can the firm capital budget be this year

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Reference no: EM131611710

Crum International's target capital structure calls for 70% debt and 30% equity. The company expects to have $3 million of net income this year, and 55% of the net income will be paid out in dividends. How large can the firm's capital budget be this year before it will have to issue new common stock? $4.5 million, $5.2 million, $6.6 million, $7.3 million, $5.9 million.

Reference no: EM131611710

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