Bike and Hike, Inc

question 19

Multiple Choice

Bike and Hike, Inc. started the year with a balance of retained earnings of $100 million and ended the year with retained earnings of $128 million. The company paid dividends of $9 million to the preferred stock holders and $22 million to common stock holders. What was Bike and Hike's net income for the year?

• A) $28 million
• B) $31 million
• C) $59 million
• D) $128 million

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Definitions:

Quoted

Refers to the listed price of a security or asset in the financial market.

Treasury Bond

A Treasury bond is a long-term government debt security with a maturity of more than ten years, issued by the U.S. Department of the Treasury, and is backed by the U.S. government's credit.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used to measure the return on investment of bonds.