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Question
If a “typical” firm reports $20 million of retained earnings on its balance sheet, could its directors declare a$20 million cash dividend without having any qualms about what they were doing? Explain your answer.
Solution
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Answered 5 months ago
Step 1
1 of 3is the cash remaining from net earnings after a cash dividend is subtracted. This cash is used to pay off debt or expand business operations
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