A company with a target D/E ratio of 1.6 reported earnings of $760,000 for the period just
Fantastic news! We've Found the answer you've been seeking!
Question:
A company with a target D/E ratio of 1.6 reported earnings of $760,000 for the period just ended. If $608,000 was the addition to retained earnings and the company uses a residual dividend policy, what will be the increase in borrowing to maintain its target D/E ratio?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Posted Date: