Examlex
All of the following help explain the ascendancy of the Reagan coalition except
Retained Earnings
The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
CAPM Approach
The Capital Asset Pricing Model, a formula used to determine the expected return of an investment based on its risk relative to the market.
Cost of Equity
The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.
Retained Earnings
The portion of a company's profits not distributed to shareholders as dividends but kept back to reinvest in the business.
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