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Kellogg Enterprises wants to maintain a target capital structure with 45% debt and 55% equity. Its forecasted net income is $1,650,000 and its board of
Kellogg Enterprises wants to maintain a target capital structure with 45% debt and 55% equity. Its forecasted net income is $1,650,000 and its board of directors has decided that no new stock can be issued during the coming year. If Kellogg follows the residual dividend model, what is the maximum capital budget that is consistent with maintaining the target capital structure
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