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ABC Corp.s projected capital budget is $2,000,000, its target capital structure is 60% debt & 40% equity and its forecast net income is $1,000,000. If

ABC Corp.s projected capital budget is $2,000,000, its target capital structure is 60% debt & 40% equity and its forecast net income is $1,000,000. If the company follows a residual dividend policy, will it pay or alternativately how much new stock must it issue?

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