A firm has a target debtequity ratio of 15 aftertax, Ask an Expert

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A firm has a target debt/equity ratio of 1.5. Aftertax earnings for 2007 were $5m and the firm needs $4m for new investments. If the company follows a residual dividend policy, what dividend will be paid? What would be the payout ratio? How much external financing could be raised without issuing new capital?

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Financial Management, Finance

Category:- Financial Management
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