Eclipse Company expects to generate P10 million internally which could be available for financing part of...

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Eclipse Company expects to generate P10 million internally which could be available for financing part of its P12 million capital budget for this coming year. Eclipse's management believes that a debt-equity ratio of 40% is best for the firm. How much should be paid in dividends if the target debt-equity ratio is to be maintained? Eclipse Company expects to generate P10 million internally which could be available for financing part of its P12 million capital budget for this coming year. Eclipse's management believes that a debt-equity ratio of 40% is best for the firm. How much should be paid in dividends if the target debt-equity ratio is to be maintained?

Answer rating: 100% (QA)

To determine the amount that should be paid in dividends while maintaining a target debtequity ratio ... View the full answer