Question: D U Question 25 SP corp. has a target debt/equity ratio of 1.25. After-tax earnings for 2021 were $6m and the firm needs $4m

D U Question 25 SP corp. has a target debt/equity ratio of

D U Question 25 SP corp. has a target debt/equity ratio of 1.25. After-tax earnings for 2021 were $6m and the firm needs $4m for new investments. SP Corp follows a residual dividend policy, How much external financing could be raised without issuing new capital? A) 10 m B) 12 m C) 13.5m D)6.67 m E) 9 m OA B Oc OD OE 1 pts No new data to save. Last checked at 1:34pm Submit Quiz

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