Assuming That a Company Has a Policy of Paying Out

question 276

Multiple Choice

Assuming that a company has a policy of paying out a constant fraction of net income in the form of a cash dividends, calculate the addition to retained earnings given the following information: cash
Dividends = $88; net income = $264.

• A) $176
• B) $245
• C) $328
• D) $402
• E) $485

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