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Merlo, Inc. maintains a debt-equity ratio of 0.60 and follows a residual dividend policy. The company has after-tax earnings of $3,300 for the year and
Merlo, Inc. maintains a debt-equity ratio of 0.60 and follows a residual dividend policy. The company has after-tax earnings of $3,300 for the year and needs $2,900 for new investments. What is the total amount Merlo will pay out in dividends this year? |
$250 | |
$0 | |
$1,663 | |
$1,488 | |
$1,088 |
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