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Harkamal Atwal
on Dec 01, 2024

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In general, the options available to management for the disposition of the firm's earnings are:

A) retention for investment in business projects.
B) an immediate cash payment to shareholders in the form of a dividend.
C) prepaying taxes for as many as ten years.
D) both a and b

Retention for Investment

The practice of holding back a portion of earnings or profits for reinvestment in the business, rather than distributing them as dividends.

Disposition of Earnings

Decisions made by a company regarding the allocation of its net income, including dividends distribution and retained earnings.

Cash Payment

A transaction in which money (in the form of cash) is given by one party to another in exchange for goods, services, or to settle a debt.

  • Grasp the vital role of dividend decisions in affecting shareholders and the firm’s financial deliberations.
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RK
Richard KoepkeDec 08, 2024
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