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On January 1, 2013, Baird Company Had Beginning Balances as Lows

question 16

Multiple Choice

On January 1, 2013, Baird Company had beginning balances as lows:
Assets = $2,250
Liabilities = $620
Common Stock = $800
During 2013, Baird paid dividends to its stockholders of $900. Given that ending retained earnings was $600, what was Baird's net income for the 2013 accounting period?

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Definitions:

Dividend Payment Claims

Rights of shareholders to receive a portion of a company's earnings distributed as dividends.

Dividend Growth Model

A model for valuing a stock by assuming constant, usually non-zero growth in dividends per share.

Capital Gains Yield

The increase in the price of an investment, calculated as the percentage difference between the current price and the purchase price.

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