Answer on Economics of Enterprise Question for LaMarcus Streeter
a. Increase the dividend payout ratio for the upcoming year.
b. Increase the percentage of debt in the target capital structure.
c. Increase the proposed capital budget.
d. Reduce the amount of short-term bank debt in order to increase the current ratio.
e. Reduce the percentage of debt in the target capital structure.
This will help to increase retained earnings, so new stocks will have lower cost than retain earnings.
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