The projected addition to retained earnings can be calculated as:
A) PM × Δ Sales.
B) PM × Δ Sales × (1 − Dividend payout ratio) .
C) PM × Projected sales × (1 − Dividend payout ratio) .
D) Projected sales × (1 − Dividend payout ratio) .
E) PM × Projected sales.
Correct Answer:
Verified
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