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A firm needs $ 2 0 million for new investments. The firm s target debt to equity ratio is 1 : 3 , and the
A firm needs $ million for new investments. The firms target debt to equity
ratio is : and the current net income is $ million.
a How much debt should the firm take?
b Does the firm pay dividends? If yes, how much?
c Does the firm issue new equity? If yes, how much?
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