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The board of directors has the responsibility to determine the dollar amount of dividends to be...

The board of directors has the responsibility to determine the dollar amount of dividends to be given to investors. Suggest that amount of dividends to declare for your investors given the following information:
1. 100,000 shares of common stock outstanding
2. $249,000 in net income
3. $1,500,000 proposed future expansions
4. $900,000 balance in retained earnings
Should the board approve a dividend in stock, cash or a combination of both?
Provide your suggestion and justify your answer.

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