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3 Delta has a target capital structure of 60% debt and 40% equity. In 2019, assuming they maintain the same dividend payout ratio of 38%,

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3 Delta has a target capital structure of 60% debt and 40% equity. In 2019, assuming they maintain the same dividend payout ratio of 38%, what is the maximum capital expenditure they could commit to and maintain their target capital structure? Assume net income of $3.3m (4 marks)

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