Multiple Choice
Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,600 at the end of 2005. During 2006 the firm earns net income of $1,300, pays dividends to shareholders of $600, and uses $300 to repurchase common shares. The book value of shareholders equity at the end of 2006 is:
A) $2,000
B) $400
C) $3,800
D) $2,600
Correct Answer:
Verified
Correct Answer:
Verified
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