Retained Earnings Represent an Internal Source of Funds That Is

question 70

True/False

Retained earnings represent an internal source of funds that is raised without the payment of interest,or cost to the firm's shareholders.

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Definitions:

EBIT

EBIT stands for Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Debt

Money owed by one party, the borrower, to a second party, the lender; it is often represented by loans or bonds.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which funds its overall operations and growth.

EPS

Earnings per share, a key indicator of a company's profitability, calculated as the company's net profit divided by the number of its outstanding shares.