Problem
Gestion absurde has chosen a residual dividend policy strict. Its debt-to-equity ratio is 3.
i. If the profits for the year are $150,000, what is the amount of expenses in permitted capital if there is no issuance of new equity?
ii. If the investment expenditures for the coming year are $750,000, Gestion absurd will it pay a dividend? If yes, by how much?
iii. Did the Absurd Management pay consistent dividend payments?