Kendra Brown is analyzing the capital requirements for Reynold Corporation for next year. Kendra forecasts that Reynold will need $13 milion to fund all of its positive-NPV projects and her job is to determine how to raise the money. Reynold's net income is $10 million, and it has paid a $3 dividend per share (DPS) for the past several years ( 1 million shares of common stock are outstanding); its shareholders expect the dividend to remain constant for the next several years. The company's target capital structure is 30% debt and 70% equity. a. Suppose Reynoid follows the residual model and makes all distributions as dividends. How much retained earnings will it need to fund its capital budget? Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000, not 2 . Round your answer to the nearest dollar. b. If Reynold follows the residual model with all distributions in the form of dividends, what will be its dividend per share for the upcoming year? Round your answer to the nearest cent. 5 What witl be its payout ratio for the upcoming year? Round your answer to two decimal places. c. If Reynold maintaing its current \$3 DPS for next year, how much retained earnings will be available for the firm's capital budget? Enter your answer in dollars. For examole, an answer of $2 million should be entered as 2,000,000, not 2 . Round your answer to the nearest dollan 3. d. Can Reynold maintain its current capital structure, maintain its current dividend per share, and maintain a 313 million copital budget without having to ratse new common stock? e. Suppose management is firmly opposed to cutting the dividend; that is, it wishes to maintain the 53 dividend for the next year, 5 uppose also that the company is committed to funding all profitable projects and is willing to issue more debt (along with the available retained earnings) to help finance the company's capital budget. Assume the resulting change in capital structure has a minimal impact on the company's composite cost of capial, so that the capital budget remains at $13 million. What portion of this year's capital budget would have to be financed with debt? Round your answer to two decirnal places. . Suppose management is firmly opposed to cutting the dividend; that is, it wishes to maintain the $3 dividend for the next year. 5 uppose aiso that th? company is committed to funding all profitable projects and is willing to issue more debt falong with the available retained earnings) to help finance t company's capital budget. Assume the resulting change in capital structure has a minimal impact on the company's composite cost of cepital, so that the capital budget remains at $13 million. What portion of this year's capital budget would have to be financed with debt? Round your answer to two decimal olaces. f. Suppose once again that management wants to maintain the $3 DpS. In addition, the company wants to maintain its target capital structure (30\%\% debt, 70% equity) and its $13 million capital budget. What is the minimum dollar amount of new common stock the company would have to issue in order to meet atl of its objectives? Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000 , op0, not 2 . Round your answer to the nearest doltar. s. 9. Now consider the case in which management wants to maintain the 33 Dps and its target capital structure but also wants to avoid issuing new common stock. The company is willing to cut its capital budget in order to meet its other objectives, Assuming the company's projects are divisible, what will be the company's capital budget for the next year? Enter your answer in dollars. For example, an answer of 12 milien should be entered as 2,000,000, not 2. Round vour answer to the nearest dollar, 7 h. If a firm follows the residual distribution policy. what actions can if take when its forecasted retained earnings are less than the fetained earnings required to fund its capital budeet