Sloburn Barbeques Inc. uses the residual dividend model to set its dividends. Selected financial information for Sloburn is provided in the table below. Selected Financial Information
Sloburn Barbeques Inc.
$$\begin{array} { | c | c | }
\hline \text { Net income } & \$ 75 \text { million } \
\hline \text { Equity capital structure weight } & 0.90 \
\hline \text { Total Dividends } & \$ 7.5 \text { million } \
\hline
\end{array}$$ How much additional funds did Sloburn need to borrow in order to finance its new investments?

Question

Sloburn Barbeques Inc. uses the residual dividend model to set its dividends. Selected financial information for Sloburn is provided in the table below. Selected Financial Information
Sloburn Barbeques Inc.
$$\begin{array} { | c | c | } 
\hline \text { Net income } & \$ 75 \text { million } \
\hline \text { Equity capital structure weight } & 0.90 \
\hline \text { Total Dividends } & \$ 7.5 \text { million } \
\hline
\end{array}$$ How much additional funds did Sloburn need to borrow in order to finance its new investments?

Quizplus · Accepted Answer

The Answer of Sloburn Barbeques Inc. uses the residual dividend model to set its dividends. Selected financial information for Sloburn is provided in the table below. Selected Financial Information
Sloburn Barbeques Inc.
$$\begin{array} { | c | c | } 
\hline \text { Net income } & \$ 75 \text { million } \
\hline \text { Equity capital structure weight } & 0.90 \
\hline \text { Total Dividends } & \$ 7.5 \text { million } \
\hline
\end{array}$$ How much additional funds did Sloburn need to borrow in order to finance its new investments?

Sloburn Barbeques Inc How Much Additional Funds Did Sloburn Need to Borrow in Its