Introduction of the term Cost of retained earnings
Give a brief introduction of the term Cost of retained earnings?
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Cost of retained earnings have the opportunity cost correlated with it and it can be calculated as well with no any difficulty. The opportunity cost in this is similar as the rate of return of the shareholders that verify the cut off point for the deals. It is also the rate of return that shareholders can get through investing after tax dividends in another opportunity.
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How can we evaluate cost of capital?
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Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?
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Question: In June 2005, a Big Mac sold for 6,000 pesos in Colombia and $3.00 in the United States. The exchange rate in June 2005 was 2,300 pesos per US Dollar. So, on Big Mac purchasing power parity gr
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