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Santorum Co . has a capital structure that consists of 5 0 percent debt, 3 0 percent common stock, and 2 0 percent preferred stock.

Santorum Co. has a capital structure that consists of 50 percent debt, 30 percent common stock, and 20 percent preferred stock. The company just reported net income to be $1,000,000. The company pays out 40 percent of its net income as dividends. How large can the company capital budget be without having to issue additional common stock or change its capital structure?

  

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