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Jement Question (4.5 Marks) CLOS A company recently reported $40 million of net income and S700 million of retained earnings. The previous retained earnings were
Jement Question (4.5 Marks) CLOS A company recently reported $40 million of net income and S700 million of retained earnings. The previous retained earnings were $750 million. Q A] How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. (1.5] B] The company management is concerned which is better as a source of capital: retaining earnings, or issuing new stocks. Therefore, they hired you as a consultant to advise them. Evaluate to the management both options in terms of relative advantages and disadvantages. [3] Heading 4 B 1 e 1
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