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If you can make your hands warmer by rubbing them together, can you make two ice cubes warmer by rubbing them together? Explain.
Retained Earnings
The cumulative amount of net income kept within a company after dividends are paid, reinvested in the business or used to pay off debt.
Net Income
The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues, indicating the company’s profit.
Dividends
A portion of a company’s earnings distributed to its shareholders as a reward for their investment.
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