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Bruderheim Corporation is reviewing its capital budget for the upcoming year. They want to continue paying a $3.00 DPS. Their target capital structure is 65%

Bruderheim Corporation is reviewing its capital budget for the upcoming year. They want to continue paying a $3.00 DPS. Their target capital structure is 65% equity and 35% debt and they have 700,00 shares of common equity outstanding with a net income of $7.6 million. What is the maximum capital budget that will support the target DPS?

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