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Retained earnings and new borrowings

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Maroon Resources expects earnings this year to be $2 per share, and plans to pay a dividend of $0.70 for the year. During the year Maroon expects to borrow $10 million in addition to its already outstanding loan balances. Maroon has 10 million shares of common stock outstanding. If all capital outlays are funded from retained earnings and new borrowings and if Maroon follows a residual dividend policy, what capital outlays are planned for the coming year?

Reference no: EM131082551

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