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How much net income must it earn

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Question - Fauver Industries plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $225,000. If the company uses its retained earnings (venture capital method), how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance?

Reference no: EM133079758

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