Crum International’s target capital structure calls for 25% debt and 75% equity.

Crum International’s target capital structure calls for 25% debt and 75% equity. The company expects to have $3 million of net income this year, and 45% of the net income will be paid out in dividends. How large can the firm’s capital budget be this year before it will have to issue new common stock?

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now