dividend policy. The firm needs $2,000 for new investments next year. The after-tax Hole Enterprises maintains a debt-equity ratio of 0.75 and follows a strict residual earnings this year are $1,800. What is the amount that Hole will pay out in dividends for this year? a) $1,142.86 b) $0 c) $300.00 d) $1,300.00 e)) $657.14