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What distributed in dividends of rising inventory prices wil

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Reference no: EM132524981

Question 1: If historical cost profits are all distributed in dividends during times of rising inventory prices, this will lead to (assuming other things being equal):

Select one:

Option A. No effect on capital.

Option B. An erosion of operating capacity.

Option C. A reduction in financial capital.

Option D. None of the given options is correct.

Reference no: EM132524981

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