Multiple Choice
Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,200 at the end of 2010.During 2011 the firm earns net income of $900,pays dividends to shareholders of $400,and issues new stock to raise $250 of capital.The book value of shareholders equity at the end of 2011 is:
A) $2,750
B) $250
C) $1,450
D) $1,950
Correct Answer:
Verified
Correct Answer:
Verified
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