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Banerjee Inc. wants to maintain a target capital structure with 35% debt and 65% equity....

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Finance

Banerjee Inc. wants to maintain a target capital structure with 35% debt and 65% equity. Its forecasted net income is $150,000, and its board of directors has decreed that no new stock can be issued during the coming year. If the firm follows the residual dividend model, what is the maximum capital budget that is consistent with maintaining the target capital structure? image
Banerjee Inc. wants to maintain a target capital structure with 35% debt and 65% cquity. Its forecasted net income is S150,000, and its board of directors has decreed that no new stock can be issued during the coming year. If the firm follows the residual dividend model, what is the maximum capital budget that is consistent with maintaining the target capital structure? $286,154 $223,846 $230,769 S205,385 $186,923

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