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If retained earnings remain constant, what does this say about net income and dividends?


A. The company must have had net income equal to zero in 2000.
B. The company did not pay a dividend in 2000.
C. If the company's net income in 2000 was $200 million, dividends paid must have also equaled $200 million.
D. If the company lost money in 2000, they must have paid a dividend.
E. None of the statements above is correct.

Solution Summary

This solution briefly describes the balance of retained earnings.