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Investing Lesson 4
Quiz: Analyzing an Income Statement

For $8,000...

B Mack, Inc. owns 2,000 shares of Coca-Cola.  Each share pays an annual dividend of $0.80.  The stock price has not changed since the company purchased its shares.  How does these shares change B Mack's income statement?
a) There would be no change since the stock price has not fluctuated. b) The company would report $1,600 in dividend income
c) The company would record the current value of the shares under investment income d) The equity method would be used


 

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