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What is the amount that hilo will pay out in dividends

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HiLo Enterprises maintains a debt-equity ratio of 0.75 and follows a strict residual dividend policy. The firm needs $2,000 for new investments next year. The after-tax earnings this year are $1,800. What is the amount that HiLo will pay out in dividends for this year?

Reference no: EM131947708

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