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Shareholder in a profitable company expect a dividend

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If you are a shareholder in a profitable company, would you expect a dividend to be paid, or would you be satisfied if all earnings stayed within the organization as retained earnings? Please explain!

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Dear student,

If you are a shareholder in a profitable company, would you expect a dividend to be paid, or would you be satisfied if all earnings stayed within the organization as retained earnings? Please explain!
If I were a shareholder ...

Solution Summary

The expert examines a shareholder in a profitable company. The expected dividend to be paid is determined.

$2.19