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Alphexta Corporation has an increasing trend of retained earnings, growing at a stable rate of 10%. The ending retained earnings for three years are as
Alphexta Corporation has an increasing trend of retained earnings, growing at a stable rate of 10%. The ending retained earnings for three years are as follows: $250,000, $275,000, and $302,500. However, the net income of the company is stable at $25,000, $24,000, and $27,000 respectively. What can be inferred from the data? Select a Choice Below current question choices OptionA The company's EPS is decreasing at a less than 10% rate every year. OptionB The company is not paying interest to its debt holders and might be stocking the excess cash for future expansion. OptionC The company is not paying dividends to its shareholders and might be stocking the excess cash for future expansion. OptionD The company's current ratio is increasing at a less than 10% rate every year
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