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If Profits Are Reinvested in the Corporation, Then

Question 41

Multiple Choice

If profits are reinvested in the corporation, then


A) payments made to bondholders will be less.
B) there are fewer funds available to distribute to stockholders.
C) the company will sell more bonds in order to pay dividends to stockholders.
D) the high profits indicate that common stockholders will get larger dividends than normal.

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