Problem 16. HiLo Enterprises maintains a debt-equity ratio of 0.75 and follows a strict residual dividend policy. The firm needs $2,000 for new investments next year. The after- tax earnings this year are $1,800. What is the amount that HiLo will pay out in dividends for this year? a) $1,142.86 b) $O c) $300.00 d) $1,300.00 e $657.14