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Coolray Corporation follows a strict residual dividend policy and its debt-equity ratio is 1.5. If net earnings for the year are $175,000, what is the

Coolray Corporation follows a strict residual dividend policy and its debt-equity ratio is 1.5. If net earnings for the year are $175,000, what is the maximum amount of capital spending that is possible if the firm does not raise any new equity? A. $175,000 B. $437,500 C. $0 D. $262,500

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