Kendra Brown is analyzing the capital requirements for Reynold Corporation for next year, Kendra forecasts that Reynold will need s16 million to fund all of its positive - Nir projects and her job is to determine how to raise the money. Rernold's net income is $11 million, and it has pais a $2 dividend per share (DPs) for the past several years (2 mifion shares of common treck are outstanding); its shareholders expect the dividend to remain constant for the next several yoars, The company's target copial structure is 35% debt and 65% equty. a. Suppose Reynold follows the residual model and mokes all distritutions as olvidends. How much retained earnings will it need to fund its capital budoet? Enter yeur 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. 5 b. If Resnold follows the residual madel with all distributions in the form of dividends, whet will be its dividand per share for the upcoming year? Hound your answer to the nearast cent. 5. What wal be its payout ratio for the upcoming year? Round yeur answer to two decimal pleces. c. If Aeynold maintains its current $2 Des for next year, how much retained eeenings will be available for the firm's casital budget? Enter your answer in ballars. For example, an ansaer of 52 mition should be entered as 2,000,000, nat 2 . Round youe answer to the nearest dotar. 1 1. Can Reynold maintain its current captal structure, maintain its current dividend per share, and maintain a s16 million capital budget without having to raise new common stock? Supposet management is firmly opposed to cutting the dividend; that is, it wishes to mantain the 12 dividend for the next year, Suppose aiso that the compatiy is cammitted to funding all profitable projects and is willing to iswue more deht (along with the cvallable retained earnings) to help finance the company's capital budget. Assume the resulting change in capital atructure has a minimal impact on the company's composite cost of capital, so that the capital budget remains at st6 million, What portion of this year's capital bedget would have to b financed with debt? Round your answer to two decimal places. Suppose once again that management wants to maintain the $2 DPS. In addition, the company wants to maintain its target copital structure (35\% debt, 65% equity) and its 516 malio capital budget. What is the minimum dollar amount of new common stock the company would have to issue in order to meet all of its objectives? 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. 5 Now corsider the case in which management wants to maintain the $2 DpS and its target capital structure but also waste to avoid issuing new common stock. The company is wiling t 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 $2 million should be entered as 2,000,000, not 2. Round your answer to the nearest doliar