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Suppose Care-4-You Hospital has two million dollars of net income remaining at the end of 201x. The financial managers must decide whether to retain all
Suppose Care-4-You Hospital has two million dollars of net income remaining at the end of 201x. The financial managers must decide whether to retain all the earnings or pay a dividend to stockholders.
Discuss the advantages or disadvantages of retaining the money in the business versus paying a dividend to the stockholders. (5 points)
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