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For a dividend paying firm, how is the projected addition to retained earnings calculated using the percentage of sales approach? Multiple Choice Net income
For a dividend paying firm, how is the projected addition to retained earnings calculated using the percentage of sales approach?
Multiple Choice
Net income times New SalesOld Sales
Cash dividendsNet incometimes New salesOld sales
Retained earningsSalestimes New SalesOld Sales
Net income times Dividend payout ratio
Net income times Retention ratio
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