The Four Stars has after tax income of $62,000 for the year just ended. The company has
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Question:
The Four Stars has after tax income of $62,000 for the year just ended. The company has a residual dividend policy and a target debt-equity ratio of 0.5. The firm wants to invest $89,000 in a new project.
How much new borrowing will be required?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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