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A company with a target D/E ratio of 0.85 has reported earnings of $925,000 for...

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Finance

A company with a target D/E ratio of 0.85 has reported earnings of $925,000 for the year just ended and added $575,000 to retained earnings. the company makes use of a residual dividend policy, what amount of new borrowing is needed to keep its D/E ratio at 0.85?

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