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5. Stockholders' equity The right side of the balance sheet shows the firm's lisbalities and stockholders' equity. Which of the following best describes shareholders' equity?

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5. Stockholders' equity The right side of the balance sheet shows the firm's lisbalities and stockholders' equity. Which of the following best describes shareholders' equity? Equity is the sum of what the initial stockheiders paid when they bought company shares and the earrings that the company has retained over the vears. Equity is the difference botweon the paid in capital and retained earnings. Now Ins, released its annual results and finaridal statements. Grace is reading the summary in the business pages of today's paper. In its annul report this year, Now bnc. reported a net income of $136 million. Last year, the company reported a retained earnings balance of 5459 million, whereas this year it increased to $540 million. How much was paid out in dividends this year? 155 million 5260 inition $217 milition 34 minot

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