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Saphire101
Mar 8, 2009, 12:58 PM
I think I may have confused myself with this homework question. OKay if a companys earned 82 million last year and paid out 20 % of earnings in dividends I take 820 million x 20 % = 164 million that is the 20 % that was paid out. But it also asks how much did the company's retained earnings increase? I am not sure I understand this part?

asastring
Mar 8, 2009, 04:36 PM
earnings $82 million
20% of $82 is $16.4 mil.
unless there is more information retained earnings should be the difference 82 - 16.4 = 65.6