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Suppose ABC company has revenue of $150 million this year, with total costs of $110 million. Assume no profits taxes. It decides to pay $25
Suppose ABC company has revenue of $150 million this year, with total costs of $110 million. Assume no profits taxes. It decides to pay $25 million in dividends to owners, and use the rest of its profits to purchase new equipment and add to its cash. The more it spends on equipment, the lower its:
a) revenue b) profit c) addition to cash d) retained earnings e) both b) & c)
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