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Bettis Bus Co. uses the residual dividend model to determine its common dividend payout. This year the company expects its net income to be 2

Bettis Bus Co. uses the residual dividend model to determine its common dividend payout. This year the company expects its net income to be 2 million and it expects to have a 25 percent common dividend payout ration. The company's target common equity ratio is 40% and the firm is financed with only common equity and debt. What is the company's forecasted total capital budget for the year?

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