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Question 5 ( 2 marks) A firm with 500,000 shares outstanding earns $2 per share and pays out 40% of its earnings as dividends. By
Question 5 ( 2 marks)
A firm with 500,000 shares outstanding earns $2 per share and pays out 40% of its earnings as dividends.
- By how much will the firms retained earnings increase?
- Assuming that it follows a residual dividend policy (and raises no new capital) how much does it invest?
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Commodity Market Trading And Investment
Authors: Tom James
1st Edition
1137432802, 978-1137432803
