(Topic 9) A company plans to double its dividend to its shareholders. Which of the following characteristics of the company would be MOST affected by this increase?

The correct answer is D. Retained earnings. See the full explanation below for the reasoning.

Question

(Topic 9)

A company plans to double its dividend to its shareholders. Which of the following characteristics of the company would be MOST affected by this increase?

Options

ALong-term debt
BShort-term debt
CNet income
DRetained earnings

How the community answered

(54 responses)

A
9% (5)
B
7% (4)
C
2% (1)
D
81% (44)

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