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(Constant dividend payout rato policy The Patterson Trucking Company needs to expand its fleet by 50 percent to meet the demands of two major contracts

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(Constant dividend payout rato policy The Patterson Trucking Company needs to expand its fleet by 50 percent to meet the demands of two major contracts it just received to transport mulitary equipment from manufacturing facilities scattered across the United States to various military bases. The cost of the expansion is estimated to be $14 million Patterson maintains a 30 percent de ratio and pays out 50 percent of teamings in common stock dividends each year a. Patterson earns $6 million next year how much common stock wil the firm need to sell in order to maintain its target capital structure? b. It Patterson wants to avoid selling any new stock but wants to maintain a constant dividend payout percentage of 50 percent how much can the tem spend on new capital expenditures a. It Patterson cars 58 milion next year how much common stock wilt the firm need to sell in order to maintain its target capital structure? milion (Round to two decal places

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