1. Morrison Moverss optimal capital structure calls for financing seventy percent of new assets with equity. Assuming that Morrison Movers has net income of $5 million, how much can be paid out in the form of a dividend and still have sufficient funds to cover a $6 million capital budget?

	a.	$ 800,000
	b.	$0, it needs all of the funds for expansion.
	c.	$4,200,000
	d.	$5,000,000