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Please answer the question using excel, thank you. 1 Reed Corporation has a capital budget of S1.2 million. The company wants to maintain a target
Please answer the question using excel, thank you.
1 Reed Corporation has a capital budget of S1.2 million. The company wants to maintain a target capital structure which is 609% debt and 4096 equity. The company forecasts that its net income this year will be 5600,000 a, f the firm uses a payout ratio of 20%, how much will be added to retained earnings? b. If the company wishes to maintain its debt-equity ratio to finance the capital budget, how much debt must the firm issue? c. How much equity must the firm issueStep by Step Solution
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