Hagler Corp. has earnings of $1.5 million and a policy of paying out 60 percent of earnings.

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Hagler Corp. has earnings of $1.5 million and a policy of paying out 60 percent of earnings. Hagler has $1.8 million in acceptable investments but is unable to issue new equity. Assuming a D/E of 0.4, how much will Hagler be able to spend on capital budgeting if it wishes to stick with the 60 percent payout?

Posted Date: May 19, 2024 09:04 AM

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Hagler Corp. has earnings of $1.5 million and a policy of paying out 60 percent of earnings.

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