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Summerland Corporation follows a strict residual dividend policy. Its debt-equity ratio is 1.5. (Leave no cells blank - be certain to enter O wherever required.)
Summerland Corporation follows a strict residual dividend policy. Its debt-equity ratio is 1.5. (Leave no cells blank - be certain to enter "O" wherever required.) a. If earnings for the year are $145,000, what is the maximum amount of capital spending possible with no new equity? (Omit $ sign in your response.) Maximum capital outlay $ b-1. If planned investment outlays for the coming year are $790,000, will Summerland pay a dividend? O Yes b-2. If so, how much? (Omit $ sign in your response.) Dividend paid c. Does Summerland maintain a constant dividend payout? O Yes O No
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