Q2: Elaph, Inc. is in the process of determining its optimal capital budget for next year. The following nvestment projects are under consideration: Required Investment $2 million 3 million 1 million 4 million 1 million 3 million 5 million Expected Rate of Return 20.0% 15.0 13.5 13.0 12.5 12.0 11.5 Proiect The firm's marginal cost of capital schedule is as follows Amount of Funds Raised $0 - $6 million $6 million $12 million $12 million $18 million Over $18 million Cost 12.0% 12.5% 13.5% 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