2. A company with a target D/E ratio of 0.75 reported earnings of $825,000 for...
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2. A company with a target D/E ratio of 0.75 reported earnings of $825,000 for the year just ended and added $775,000 to retained earnings. If the company uses a residual dividend policy, what amount of new borrowing is needed to keep its D/E ratio at 0.75? round final answer to 2 decimals
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