It finances with debt and common equity but it wants to


Sheehan Corp. is forecasting an EPS of $3.00 for the coming year on its 500,000 outstanding shares of stock. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00 dividend per share. It finances with debt and common equity, but it wants to avoid issuing any new common stock during the coming year. Given these constraints, what percentage of the capital budget must be financed with debt?

30.54%
32.15%
33.84%
35.63%
37.50%

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: It finances with debt and common equity but it wants to
Reference No:- TGS0624840

Expected delivery within 24 Hours