What capital budget could firm support without issuing stock

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A corporation expects to have earnings available to common shareholders (net profits minus preferred dividends) of $1,000,000 in the coming year. The firm plans to pay 40 percent of earningss available in cash dividends. If the firm has a target capital structure of 40 percent long term debt, 10 percetn preferred stock, and 50 percent common stock equity, what capital budget could the firm support without issuing new common stock?

Reference no: EM13335432

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