26 Residual Dividend Policy Hillshire plc uses a residual dividend policy. (see problem 11). A debtequity ratio
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26 Residual Dividend Policy Hillshire plc uses a residual dividend policy. (see problem 11). A debt–equity ratio of 0.60 is considered optimal. Earnings for the period just ended were £524,292 and a dividend of
£50,000 was declared. How much in new debt was borrowed? What were total capital outlays?
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