The firm wants to maintain a 60 percent debtassets ratio in


Desert A/C plans to invest $50 million to expand operations. The firm wants to maintain a 60 percent debt/assets ratio in its capital structure. If net income is expected to be $25 million this year and Desert follows the residual dividend policy, what amount of dividends will be paid this year?

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Finance Basics: The firm wants to maintain a 60 percent debtassets ratio in
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