The Major,overall Argument Against the "Marginal Principle of Retained Earnings

question 109

Multiple Choice

The major,overall argument against the "marginal principle of retained earnings" is:

• A) the uncertainty surrounding capital investment projects.
• B) the lack of ability to adequately measure corporate investment returns.
• C) the diversity of shareholders and their potential investment returns.
• D) the funds must provide a higher rate of return than the shareholder could achieve alone.