Answer to Question #12663 in Other Management for John
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.
The increase of percentage debt in the target capital structure will automatically reduce the equity capital and the budget, so there will be no need in issuing additional common stock in order to distribute the earnings.
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