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(dividend policy and issue of new shares of common stock) Karen field enterprises had just completed its annual planning and budgeting process that needs to
(dividend policy and issue of new shares of common stock) Karen field enterprises had just completed its annual planning and budgeting process that needs to raise $24 million to finance its capital expenditures for the coming year. The firm earn $21 million last year and will pay out half this amount in dividends. If the firms CFO wants to finance new investments using no more than 30% debt financing how much common stock will the firm have to issue to raise the needed $24 million? how much common stock with the firm have to issue?
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