Warren Supply Inc. is evaluating its capital budget. The company finances with debt and common equity, but because of market conditions, wants to avoid issuing any new common stock during the coming year. The firm currently has 500,000 outstanding shares. It is forecasting $1,500,000 net income for the coming year. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt?

Group of answer choices

30.54%

32.15%

33.84%

35.63%

37.5%