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Suppose Harry Gidwitz's position is adopted; that is, the firm implements all attractive investments, DPS is $1.10. And no new common stock is issued. Compute

Suppose Harry Gidwitz's position is adopted; that is, the firm implements all attractive

investments, DPS is $1.10. And no new common stock is issued. Compute the firm's

debt/equity ratio in each of the next five years. Discuss the desirability of such a policy.

The format of Exhibit 4 can be used in the analysis

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