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Which of the Following Statements Is True

Question 31

Multiple Choice

Which of the following statements is true?


A) Corporations generally pay all their earnings as dividends.
B) A firm's residual earnings technically belong to the preferred shareholders.
C) Corporations typically reinvest none of their earnings to enhance future earnings.
D) The only cash flows that an investor will receive until he or she sells their shares will be the dividends.

Correct Answer:

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