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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.
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 B Corp decides to retain all of its earnings? A) $250 m B) $2,500m C) $4,500 m D) $450 E) $5,500 m OA OB C D OE
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