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The following information is available for a company: December 31, 2017: Total Assets $100,000 Net income for the year $4,000 Dividends paid $0 Assets are
The following information is available for a company:
December 31, 2017: Total Assets $100,000 Net income for the year $4,000 Dividends paid $0
Assets are equally financed with debt and equity 50% of the equity comes from contributed capital
December 31, 2018: Total Assets $92,000 Net loss for the year $3,000 No new debt or equity issued or repurchased
In 2018, the company most likely:
A/ Paid a dividend of $1,000 | ||
B/ Paid a dividend of $5,000 | ||
C/ Did not pay a dividend because they incurred a loss. |
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