California Fluoride Industries (CFI) management is planning next year's capital budget. The company's profits and dividends are growing at a constant rate of 4 percent. The last dividend, D0, was $0.80; and the current equilibrium price of the shares is $8.73. CFI can raise new debt at 12 percent before cost of taxes. CFI is at its optimal capital structure, which is 35 percent debt and 65 percent equity, and the company's marginal tax rate is 40 percent. IFC has the below independent, indivisible, and equally risky investment opportunities:

 Project Cost Rate of Return, A. $18,000 9%, B. 16,000 11%, C. 13,000 15%, D. 23,000 13% 

Required:

What is the budget of optimal capital of CFI?