Q2: Elaph, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Required Investment Expected Rate of Return Project A $2 million 20.0% B 3 million 15.0 1 million 13.5 D 4 million 13.0 E 1 million 12.5 F 3 million 12.0 G 5 million 11.5 The firm's marginal cost of capital schedule is as follows: Amount of Funds Raised Cost $0 $6 million 12.0% $6 million - $12 million 12.5% $12 million $18 million 13.5% Over $18 million 15.0% The company's target capital structure is 40% debt and 60% equity. The company's net income is $10 million. If the manager will follow a residual dividend policy, what is the company's DPO