Question
Your company has a residual dividend policy, a constant debt to equity ratio of 1.5, and earnings of 60k$. What is the maximum capital outlay
Your company has a residual dividend policy, a constant debt to equity ratio of 1.5, and earnings of 60k$. What is the maximum capital outlay you can undertake without issuing new equity? What is the dividend if capital outlays are 110k$ ?
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
