Suppose a fiRm's Net Income Is $950, Dividends Paid Total

question 149

Multiple Choice

Suppose a firm's net income is $950, dividends paid total $300, and new equity sales over the same period amount to $311. If the initial value of equity was $7,100, what is the cash flow to
Shareholders?

• A) -$650
• B) -$11
• C) $50
• D) $650
• E) $8,100

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Definitions:

Smugglers

Individuals or groups who illegally transport goods across borders to avoid taxes or import/export restrictions.

Slave Trade

The historical trade in which human beings were bought and sold as property, primarily seen in the transatlantic trading systems between the 16th and 19th centuries.

Commercial Ties

The economic and business relationships between companies, industries, or countries.