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Buckys Apparel Inc. is considering paying a dividend on December 31, 2020. A loan covenant...

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Accounting

Buckys Apparel Inc. is considering paying a dividend on December 31, 2020. A loan covenant stipulates that the payout ratio must be less than or equal to 10%. If the company has no preferred stock outstanding, and net income is expected to be $64,000, what is the maximum value that Bucky may pay out in dividends to the common shareholders?

Maximum dividend amount Answer [ ]

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