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Crawford Inc., a litter recycling company, uses a residual dividend policy. A debt/equity ratio of 1.7 is considered optimal. Earnings for the period just ended

Crawford Inc., a litter recycling company, uses a residual dividend policy. A debt/equity ratio of 1.7 is considered optimal. Earnings for the period just ended were $3,100, and a dividend of $760 was declared. How much in new debt was borrowed? What were total capital outlays?

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