Sheehan corp is forecasting an eps of 300 for the coming, Ask an Expert

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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%

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Basic Finance, Finance

Category:- Basic Finance
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