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wrote...
3 years ago
Sweetums Inc., a confectioner best known for its mint ogre balls, uses the residual dividend model to set its dividends. Selected financial information for Sweetums Inc. is provided in the table below. Given the investment plan summarized in the table, how much new debt will it have to take on in order to maintain its target capital structure?

Selected Financial Information
Sweetums Inc.
Net income$90 million
Equity capital structure weight0.60
Investments$100 million
Dividends $0.30 per share


▸ $30 million

▸ $40 million

▸ $60 million

▸ $90 million

▸ $100 million
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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3 years ago
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wrote...

3 years ago
Good timing, thanks!
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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2 hours ago
this is exactly what I needed
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