JPR Company is financed 75% by equity and 25% by debt, if the firm expect to earn

Question:

JPR Company is financed 75% by equity and 25% by debt, if the firm expect to earn 30 million in net income next year and retain 40% of it, how large can the capital budget be before must be sold?
15.5 million
7.5 million
16.0 million
12.0 million
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...