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If Neofuture Corp.is a New,profitable Company,_____

Question 155

Multiple Choice

If Neofuture Corp.is a new,profitable company,_____


A) it must pay dividends to its stockholders.
B) its entrepreneurs will not get any "sweat equity."
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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