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After Earning $30 Million in Net Income,Rolatrim Industries Distributed $5

Question 94

Multiple Choice

After earning $30 million in net income,Rolatrim Industries distributed $5 million in dividends to their stockholders.The board of directors of the firm decided to invest the remaining $25 million back into the business.This $25 million reinvestment of profits represents:


A) trust fund.
B) mutual funds.
C) retained earnings.
D) preferred capital.

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