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Since Its Inception Company X Has Had Earnings of $800,000

Question 2

Multiple Choice

Since its inception Company X has had earnings of $800,000 and paid out dividends of $900,000.Which of the following statements is correct with respect to Company X?


A) The Company has been subject to a hostile takeover.
B) The Company's share price will likely increase when investors become aware of this.
C) A liquidating dividend has occurred.
D) Company X's total Shareholder Equity has increased since its inception.

Correct Answer:

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