The Reason Why Retained Earnings Have a Cost Equal to Rs

question 80

True/False

The reason why retained earnings have a cost equal to rs is because investors think they can (i.e., expect to) earn rs on investments with the same risk as the firm's common stock, and if the firm does not think that it can earn rs on the earnings that it retains, it should distribute those earnings to its investors. Thus, the cost of retained earnings is based on the opportunity cost principle.

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The study of the legal systems of different states.

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Comprehensive frameworks of laws, regulations, institutions, and procedures that guide the administration of justice in a country or region.

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