Crawford inc a litter recycling company uses a residual


Crawford Inc., a litter recycling company, uses a residual dividend policy. A debt-equity ratio of 2.1 is considered optimal. Earnings for the period just ended were $2,500, and a dividend of $640 was declared.

a) How much in new debt was borrowed?

b) What were total capital outlays?

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Financial Management: Crawford inc a litter recycling company uses a residual
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