Makes some profit and does not pay dividend

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Reference no: EM131016129

In a year, a business makes some profit and does not pay dividend. which of the following will reduce the retained earnings.

use the retained earnings to buy a machine

use the retained earnings to buy back some of its own shares and retire the shares.

use the retained earnings to buy some IBM shares.

use the retained earnings to buy some material to be used in production in next year

use the retained earnings to pay back the principle of some debt.

Reference no: EM131016129

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