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    Foundations of Financial Management Study Set 4
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    Exam 18: Dividend Policy and Retained Earnings
  5. Question
    Dobson's Auto Earned $500,000 Last Year and Had a 20
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Dobson's Auto Earned $500,000 Last Year and Had a 20

Question 28

Question 28

Multiple Choice

Dobson's Auto earned $500,000 last year and had a 20% dividend payout ratio. How much did the firm add to its retained earnings?


A) $325,000
B) $425,000
C) $250,000
D) $400,000

Correct Answer:

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