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What is the amount that the daily news will pay

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The Daily News maintains a debt-equity ratio of .60 and follows a residual dividend policy. The firm needs $1,300 for new investments next year. The after-tax earnings this year are $1,600. What is the amount that The Daily News will pay out in dividends for the year?

How to solve this question to get an answer of 788

Reference no: EM132602394

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