The Marginal Principle of Retained Earnings Means That Each Potential

question 43

Multiple Choice

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must

• A)provide a higher rate of return than the stockholders can achieve after paying taxes on the distributed dividends.
• B)yield a return equal to or greater than the marginal cost of capital.
• C)provide enough return to pay the corporation's marginal tax rate.
• D)have an internal rate of return greater than the corporate growth rate of dividends.

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Definitions:

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes providing a supportive and non-judgmental environment, where the client leads the conversation and healing process.

Reflect Feelings

The practice of recognizing, understanding, and acknowledging someone's emotional state by verbalizing it back to them, often used in empathetic communication.

Behavior Therapy

A form of psychotherapy aimed at altering unwanted behaviors by utilizing conditioning and reinforcement techniques.

Unconscious Resentment

Negative feelings or anger towards someone or something that one is not fully aware of or has not acknowledged.