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NEW QUESTION: 1
Company A has been profitable for the past five years but the Retained Earnings reported on the financial statements has not grown. Which of the following statements could explain the situation?
A. Company A has paid down a portion of its long term debt.
B. Company A has issued additional shares of common stock.
C. Company A has paid dividends to shareholders each year.
D. Company A has invested heavily in new machinery and equipment.
Answer: C

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