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    Financial Management Theory and Practice Study Set 4
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    Exam 12: Corporate Valuation and Financial Planning
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    As Long as a Firm Does Not Pay Out 100
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As Long as a Firm Does Not Pay Out 100

Question 35

Question 35

True/False

As long as a firm does not pay out 100% of its earnings, the firm's annual profit that is retained in the business (i.e., the addition to retained earnings) is another source of funds for a firm's expansion.

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