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How much of the project must be funded by equity

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Question - Bulldogs Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. Bulldogs Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of Bulldogs Inc. is 5,000. How much of the project must be funded by equity?

Reference no: EM133144734

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