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Grass Enterprises Just Closed a Good Year

Question 72

Multiple Choice

Grass Enterprises just closed a good year. It had Sales of $10 million, EBIT of $1 million and Net Income of $500,000. The firm also paid dividends of $150,000 during the year. If Grass started the year with equity of $900,000, what will its year ending equity be?


A) $1,900,000
B) $1,400,000
C) $1,250,000
D) $850,000

Correct Answer:

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