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SSS has a capital structure that consists of 20% equity and 80% debt. The company expects to report $3 million in net income this year,

SSS has a capital structure that consists of 20% equity and 80% debt. The company expects to report $3 million in net income this year, and 60% of the net income will be paid out as dividends. How large must the firms capital budget be this year without it having to issue any new common stock?

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