How much in new debt was borrowed

Assignment Help Financial Management

Reference no: EM131059976

Crawford Inc., a litter recycling company, uses a residual dividend policy. A debt-equity ratio of 2.1 is considered optimal. Earnings for the period just ended were $2,500, and a dividend of $640 was declared.

a) How much in new debt was borrowed?

b) What were total capital outlays?

Reference no: EM131059976

Questions Cloud

Determine the speed of an aircraft : The speed of an aircraft is sometimes expressed as a Mach number: Mach 1 means that the speed is equal to the speed of sound. If you wish to determine the speed of an aircraft going Mach 2.2, for example, in meters per second or miles per hour

Find the maximum overall rate of the loan : Marta purchased a home with an adjustable rate mortgage. The margin on an adjustable-rate mortgage is 5.5% and the rate cap is 6.5% over the life of the loan. If the current index rate is 8.9%, find the maximum overall rate of the loan.

Determining the example of a wave : Give an example of a wave that does not need a medium in which to travel and a wave that does need a medium?

Investments during your retirement years : Assume that you are 21 years old. You would like to retire at age 65. You would like to have an income throughout retirement that is equivalent to $65,000 in todays dollars during retirement. You believe that you will earn an average return of 5% on ..

How much in new debt was borrowed : Crawford Inc., a litter recycling company, uses a residual dividend policy. A debt-equity ratio of 2.1 is considered optimal. Earnings for the period just ended were $2,500, and a dividend of $640 was declared. How much in new debt was borrowed? What..

Attaining higher levels of education : Attaining higher levels of education has long been touted as a means toward improving the lives of Native people. If you were a tribal leader, how would you promote higher education in your family and community?

What is the concept of work in physics : What is the concept of work in physics? can you please give me some explanation by quoting some examples which are easy to understand by a non physics student?

Earnings before interest and taxes for the first year : Margarite's Enterprises is considering a new project. The project will require $325,000 for new fixed assets, $160,000 for additional inventory and $35,000 for additional accounts receivable. Short-term debt is expected to increase by $100,000 and lo..

Computing the produce destructive interference : If the wavelength of the radio broadcast by the radio station is 400 m and there is a phase change upon reflection from the cloud, find the minimum height of the storm cloud that will produce destructive interference between the direct and reflect..

User Account

All Pages