Buena Terra Corporation is reviewing its capital budget for the upcoming year.?

d. Can the company maintain its current capital structure, maintain the $3.00 DPS, and maintain a $10 million capital budget without having to raise new common stock?

e. Suppose that Buena Terra鈥檚 management is firmly opposed to cutting the dividend; that is, it wishes to maintain the $3.00 dividend for the next year. Also, assume that the company was committed to funding all profitable projects and was willing to issue more debt (along with the available retained earnings) to help finance the company鈥檚 capital budget. Assume that the resulting change in capital structure has a minimal effect on the company鈥檚 composite cost of capital, so that the capital budget remains at $10 million. What portion of this year鈥檚 capital budget would have to be financed with debt?

you're leaving out critical information. There's no way to answer "d" without more information...

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