If the firm expects to earn 20 million in net income and

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Clinton Company is financed 40 percent by equity and 60 percent by debt. If the firm expects to earn $20 million in net income and retain 40% of it, how large can the capital budget be before common stock must be sold?

$8.0 million
$12.0 million
$20.0 million
$50.0 million

Reference no: EM13568120

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