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19. Greshak Corp. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and its management
19. Greshak Corp. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and its management has decided that no new stock can be issued during the coming year. If Greshak follows the residual dividend policy, what is the maximum capital budget that is consistent with maintaining the target capital structure? Select one: A. $673,652 B. $709,107 C. $746,429 D. $785,714 E. $825,000
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