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Posh Design & Fashion maintains a debt-to-equity ratio of 0.40 and follows a residual distribution policy. The firm needs $2,414 for new Investments next year.

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Posh Design & Fashion maintains a debt-to-equity ratio of 0.40 and follows a residual distribution policy. The firm needs $2,414 for new Investments next year. The net income this year is $1,897. Find the amount of earnings that Posh will retain this year (round your answer to the nearest whole number)

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