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If ABC Corp.is Profitable

Question 173

Multiple Choice

If ABC Corp.is profitable,


A) it must pay dividends to its stockholders
B) pretax profits are either paid as dividends or reinvested in the corporation
C) after-tax profits are either paid as dividends or reinvested in the corporation
D) it is contractually obligated to retain a portion of its earnings
E) it typically uses the profits to buy back its own stock from the underwriter

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