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PLZ HELP WILL VOTE (Constant dollar dividend payout policy Parker Prints is in negotiation with two of its largest customers to increase the firm's sales
PLZ HELP WILL VOTE
(Constant dollar dividend payout policy Parker Prints is in negotiation with two of its largest customers to increase the firm's sales dramatically. The increase will require that Parker and its production facilities at a cost of $40 million. Parker expects to pay Out $7.5 million individends to its shareholders text year. Parker maintains a 20 percent debt ratio in its capital structure a. Parker ears $14 million next year, how much common stock win the firm need to sell in order to maintain is target capital structure? b. Parker wants to avoid selling any new stock, how much can the firm spend on new capital expenditures? a. Parker carns $14 million next year, how much common stock will the fem need to sell in order to maintain its target capital structurer? million (Round to two decimal places) b. Parker wants to avoid selling any new stock, how much can the firm spend on new capital expenditures? $ 2 million (Round to two decimal places) th d TI tol its og Step by Step Solution
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