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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...

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?

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CH260410_484731_FIN.doc

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...

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