Residual Dividend Policy. The Bears Corporation practices a strict residual dividend policy and maintains a capital structure of 60 percent debt, 40 percent equity. Earnings for the year are $5,000....

Residual Dividend Policy. The Bears Corporation practices a strict residual dividend policy and maintains a capital structure of 60 percent debt, 40 percent equity. Earnings for the year are $5,000. What is maximum amount of capital spending possible without selling new equity? Suppose that planned investment outlays for the coming year are $12,000. Will Bears be paying a dividend? If so, how much?