Acme Inc. is reviewing its capital budget for the upcoming year. It has paid a $3 dividend per share (DPS) for the past several years and its shareholders expect the dividend to remain constant for the next several years. The company's target capital structure is 60% equity and 40% debt. They have 1 million shares of common stock outstanding and their net income is $8 million. The company forecasts it would require $10 million to fund all positive NPV projects for the upcoming year. 5. Suppose they are firmly opposed to cutting the $3 dividend for next year. Also assume they are committed to funding all positive NPV projects and are willing to issue more debt (along with the available retained earnings) to help finance the capital budget. Assume the resulting change in capital structure has a minimal impact on the cost of capital, so that the capital budget remains at $10 million. What portion of the capital budget would have to be financed with debt? 6. Suppose they want to maintain the $3 DPS, they want to maintain their target capital structure, and they want to maintain their $10 million capital budget. What is the minimum dollar amount of new common stock the form would have to issue in order to meet each of its objectives? 7. Suppose they want to maintain their $3 DPS and their target capital structure but wants to avoid issuing new common stock. The company is willing to cut its capital budget in order to meet its other objectives. What will be their capital budget for the coming year? 8. What actions can a firm that follows a passive residual dividend policy take when its forecasted retained earnings are less than the retained earnings required to fund its capital budget