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The sum of the two vectors and
is equal to zero.What can you conclude about
and
?
Dividends
Funds distributed by a company to its stockholders, typically from earnings.
Retained Earnings
The portion of net income not distributed to shareholders but retained by the company to reinvest in its core business or to pay off debt.
Stock Dividend
A payment made to shareholders in the form of additional shares rather than cash, often based on a predetermined ratio to existing ownership.
Balance Sheet
A summary document that outlines a firm's liabilities, assets, and equity held by shareholders at a particular moment.
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