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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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