Unless otherwise instructed, use two (2) decimal places for both percentages and dollar amounts. This is enforced, like in Connect. If you need to enter units, use % for percentages, $ for dollar amounts, x for times and years for years. Question 3 (4 points) Santorum Co. has a target capital structure of 40 percent debt, 20 percent preferred stock, and 40 percent common stock. Net income is forecast to be $500000. The company pays out 60 percent of its earnings as dividends. How much new capital can the firm raise without having to issue new common shares or change its capital structure? Your Answer: Answer units Previous Page Next Page