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Question - Waterway Industries has 515000 shares of $10 par value common stock outstanding. During the year Waterway declared a 14% stock dividend when the market price of the stock was $37 per share. Three months later Waterway declared a $0.50 per share cash dividend. As a result of the dividends declared during the year, find the retained earnings decreased by?
a. $485500
b. $2667700
c. $2961250
d. $509850
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