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2. Which one of the following statements is correct concerning a corporation with taxable income of $-890,000? A. Net income minus dividends paid will equal
2. Which one of the following statements is correct concerning a corporation with taxable income of $-890,000?
A. Net income minus dividends paid will equal the ending retained earnings for the year.
B. An increase in depreciation will decrease the operating cash flow, holding all other things as constant.
C. An increase in the tax rate will increase net income, holding all other things as constant.
D. Net income divided by the number of shares outstanding will equal the dividends per share.
E. None of the above.
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