How much external equity must bowery raise

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Problem 1: Bowery and Dove Company has 150,000 shares outstanding and plans to pay $0.50 per share in dividends each quarter next year. Bowery has a capital budget of $650,000 for next year and plans to maintain its present debt ratio to 0.25. If earnings are expected to be $5.50 per share. How much external equity must Bowery raise?

Reference no: EM132729609

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