Question
A company with a target D/E ratio of 1.6 reported earnings of $760,000 for the period just ended. If $608,000 was the addition to retained
A company with a target D/E ratio of 1.6 reported earnings of $760,000 for the period just ended. If $608,000 was the addition to retained earnings and the company uses a residual dividend policy, what will be the increase in borrowing to maintain its target D/E ratio?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
