Aikman Company Has Paid Dividends of $2,410,$0,$1,570 and $1,060 Over

question 51

Multiple Choice

Aikman Company has paid dividends of $2,410,$0,$1,570 and $1,060 over the first four years of the company's existence.If Retained Earnings after year four has an ending balance of $9,700,what is the average annual amount of net income (loss) over the past four years for Aikman?

• A)$3,685.
• B)$14,740.
• C)$840.
• D)$1,260.

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Definitions:

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.

Present Value

The worth at present of an anticipated future cash amount or stream of payments, considering a particular rate of return.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their funds.