Yellow Duck Distribution Group is expected to generate $140,000,000 in net income over the next year. Yellow Duck Distribution's stockholders expect it to maintain its long-run dividend payout ratio of 30% of earnings.

If the firm wants to maintain its current capital structure of 60% debt and 40% equity, the maximum capital budget it can support with this year's expected net income is?

Answer rating: 100% (QA)

To determine the maximum capital budget that Yellow Duck Distribution Group can support we need to c... View the full answer