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6 October, 16:43

Now Inc. released its annual results and financial statement. Grace is reading the summary in the business pages of today's paper. In its annual report this year, NOW Inc. reported a net income of $152 million. Last year, the company reported a retained earnings balance of $459 million, whereas this year it increased to $540 million. How much was paid out in dividends this year? a. $4 millionb. $360 millionc. $71 milliond. $233 million

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  1. 6 October, 17:09
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    Option (c) is correct.

    Explanation:

    Given that,

    Retained earnings in the last year = $459 million

    Net income in this year = $152 million

    Retained earnings in this year = $540 million

    Dividends paid this year:

    = (Retained earnings in the last year + Net income in this year) - Retained earnings in this year

    = ($459 million + $152 million) - $540 million

    = $71 million

    Therefore, the company paid out $71 million in dividends this year.
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