The clothing depot maintains a debt-equity ratio of 50 and, Ask an Expert

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The Clothing Depot maintains a debt-equity ratio of .50 and follows a residual dividend policy. The firm needs $2,700 for new investments next year. The after-tax earnings this year are $1,700. What is the amount that the Clothing Depot will pay out in dividends for this year? Please show all work.

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Financial Management, Finance

Category:- Financial Management
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