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Problem:

ABC Inc. has a current and target capital ratio of 30 percent debt and 70 percent equity. This past year, ABC, which uses the residual distribution model and makes all distributions in the form of dividends, has a dividend payout ratio of 47.5 percent and net income of $800,000.

Required:

Question: What was ABC's capital budget?

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148998

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