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Retained Earnings
The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.
Constant Dividend
A policy of distributing a fixed amount of dividend per share to shareholders, regardless of the company's earnings variations over time.
Cost of Retained Earnings
This represents the opportunity cost for a company of using its retained earnings for investment purposes rather than distributing them as dividends.
Common Stock
A type of equity security that represents ownership in a corporation, giving holders voting rights and the potential for dividends.
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