The Change in a Firm's Retained Earnings Is

question 60

Multiple Choice

The change in a firm's retained earnings is

• A)the amount of cash that the firm has saved up.
• B)the difference between the market price of the stock and the book value.
• C)the difference between the net income earned and the dividends paid during a year.
• D)the amount of directly contributed equity capital in excess of par value.

---

Definitions:

Signaling

The action of sending out a signal (often indirectly through actions or attributes) to convey information or intentions in environments with information asymmetries.

Advertising

The practice of promoting products, services, or brands through various media to influence consumer behavior.

Principal

The initial sum of money loaned or invested, excluding any interest or dividends.

Generous Scoops

The act of providing or serving portions of food, especially ice cream, that are more substantial than what is standard or expected.