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A firm has positive net income and a non-zero plowback ratio. Which of the following statements is true? A. The firm's equity will only increase
A firm has positive net income and a non-zero plowback ratio. Which of the following statements is true?
A. The firm's equity will only increase if they issue shares of stock.
B. The firm's equity will definitely increase, no matter what.
C. If the company issues no new shares of stock, its equity will increase.
D. The firm has no additions to retained earnings.
The answer it gave was B. that was wrong
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