Assume That a Firm Had Shareholders' Equity on the Balance

question 44

Multiple Choice

Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,600 at the end of 2005. During 2006 the firm earns net income of $1,300, pays dividends to shareholders of $600, and uses $300 to repurchase common shares. The book value of shareholders equity at the end of 2006 is:

• A) $2,000
• B) $400
• C) $3,800
• D) $2,600

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Definitions:

Good Practice

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Java Console Application

A Java program that runs in a text-based console environment, typically executing tasks and returning text output.

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DecimalFormat Class

A class in Java that provides the ability to format decimal numbers into strings with a specific pattern, being part of the java.text package.