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For a dividend paying firm, how is the projected addition to retained earnings calculated using the percentage of sales approach?A) Net income × (1 - Retention ratio)B) Net income × (1 - Dividend payout ratio)C) (Cash dividends / Net income) × (New sales / Old sales)D) (Retained earnings / Sales) × (New Sales / Old Sales)E) Net income × (New Sales / Old Sales)
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