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A firm has an equity balance of $400K at the end of year 0. The company generates $100K in Net Income during the year. The
A firm has an equity balance of $400K at the end of year 0. The company generates $100K in Net Income during the year. The firms dividend payout ratio is 20%. Assuming the company does not buy or sell stock during year 1, the firms equity balance at the end of year 1 would be:
$400 | ||
$480 | ||
$470 | ||
$420 | ||
$500 |
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