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5. Soprano, Inc. uses a residual dividend policy. It considers the debt-equity ratio of .80 to be optimal. Earnings for the period just ended were

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5. Soprano, Inc. uses a residual dividend policy. It considers the debt-equity ratio of .80 to be optimal. Earnings for the period just ended were $900, and a dividend of $420 was declared. a. How much in new debt was borrowed? b. What were total capital outlays

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