Sandifer Manufacturing Co. (from the previous problem) plans to reinvest $50,000 of its earnings back in the

Question:

Sandifer Manufacturing Co. (from the previous problem) plans to reinvest $50,000 of its earnings back in the firm. What does this plan leave for the payment of a cash to Sandifer’s stockholders?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...