Sheehan Corp

question 60

Multiple Choice

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?

• A)30.54%
• B)32.15%
• C)33.84%
• D)35.63%
• E)37.50%

---

Definitions:

Breast Development

The natural physiological process of growth and change that female breasts undergo during puberty and over the life span.

Emotional-Sexual Relationships

Connections between individuals that involve both emotional intimacy and sexual attraction or activity.

Homosexuals

Individuals who are romantically or sexually attracted to people of their same sex.

Reproductive Capability

The ability of an organism to produce offspring, thereby ensuring the continuation of its species.