Multiple Choice
All of the following are true of retained earnings except:
A) it is the difference between paid-in capital and the total dividends paid.
B) it represents the amount of new capital shareholders indirectly contribute.
C) it is equal to earnings times the quantity one minus the payout ratio.
D) it is the amount of earnings plowed back into the firm.
Correct Answer:
Verified
Correct Answer:
Verified
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