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Assume that B Corp. net income for next year would be 500 million and its optimal capital budget for next year is 250 million. Also

Assume that B Corp. net income for next year would be 500 million and its optimal capital budget for next year is 250 million. Also assume that the debt ratio is now \( 80 \% \). What would be the maximum capital spending if \( \mathrm{B} \) Corp decides to retain all of its earnings? A) \( \$ 250 \mathrm{~m} \) B) \( \$ 2,500 \mathrm{~m} \) C) \( \$ 4,500 \mathrm{~m} \) D) \( \$ 450 \) E) \( \$ 5,500 \mathrm{~m} \)

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