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

question 39

Multiple Choice

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?

• A)$0
• B)$10 M
• C)$20 M
• D)$7.5 M
• E)$40 M

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Definitions:

Relatedness Needs

The psychological needs for interpersonal relationships and emotional connections with others.

Esteem Needs

In Maslow’s hierarchy, include recognition from peers and colleagues.

Self-actualization

A psychological term referring to the realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Self-actualization

A psychological concept pertaining to the realization of one's full potential, achieving the highest level of human needs according to Maslow's hierarchy.