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Your firm makes good profits in recent years. It also generates plenty of cash. As discussed...

Your firm makes good profits in recent years. It also generates plenty of cash. As discussed in class, there are three options available to you for making use of these profits and cash. They are...

paying dividends, reinvesting in the firm through long-term investments, and repurchasing company stock.

paying dividends, reinvesting in the firm through retained earnings, and selling additional (or new) stock.

paying dividends, reinvesting in the firm through retained earnings, and repurchasing company stock.
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Answer #1

Answer: Option C: Paying Dividend, reinvesting in the firm through retained earnings and repurchasing company stock.

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