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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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