Use the Figure Below to Answer the Following Questions

question 37

Multiple Choice

Use the figure below to answer the following questions.

Figure 19.1.2
-Which point in Figure 19.1.2 indicates that the richest 20 percent of families earn 40 percent of the income?

• A)a
• B)b
• C)c
• D)d
• E)none of the above

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Definitions:

Dividend Increases

The raising of the dividend amount paid to shareholders by a company, typically indicative of the company’s growing profits or cash reserves.

Basis of Value

The underlying assumptions or standards used to determine the value of an asset or liability.

Dividends

Funds distributed by a company to its stockholders, typically from earnings.

Retained Earnings

The portion of net income not distributed to shareholders but retained by the company to reinvest in its core business or to pay off debt.