1. Applicants for VA or FHA loans have to meet certain special qualifications. All of the following may apply except ____.
having served in the military
a specific income level or lower
a limit on the size of the loan that is guaranteed
must work for a federal or state government agency
2. Banerjee Inc. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $825,000, and its board of directors has decreed that no new stock can be issued during the coming year. If the firm follows the residual dividend model, what is the maximum capital budget that is consistent with maintaining the target capital structure?
a. $1,178,571
b. $1,296,429
c. $1,143,214
d. $954,643
e. $1,437,857