The Mores Clothing Depot Maintains a Debt-Equity Ratio of

The Mores Clothing Depot maintains a debt-equity ratio of .50 and follows a residual dividend policy. The firm needs $2,700 for new investments next year. The after-tax earnings this year are
$1,700. What is the amount that the Clothing Depot will pay out in dividends for this year?

A) $0
B) $100
C) $350
D) $650
E) $1,000