--%>
Assignment Help - homework help

Clarify retained earnings and its importance

Clarify retained earnings?  Describe importance of this?

Retained earnings represent the sum of all the earnings available to common stockholders of a business at the time of its entire history, minus the total of all the common stock dividends which it has ever paid. Those earnings which were not paid out were, by definition, retained.

Importance
Retained earnings are important because of the reason they represent amounts reinvested into a company in support of the company’s owners instead of being paid out in the form of dividends.

   Related Questions in Finance Basics

  • Q : What is Revenue Revenue : Any adding up

    Revenue: Any adding up to cash or other current assets which does not raise any liability or reserve and does not symbolize the reduction or recovery of expenditure (example, reimbursements or abatements). Revenues are a kind of receipt usually derive

    		•
  • Q : What is Make-Buy Analysis Make-Buy

    Make-Buy Analysis: Business decision which compares the costs and advantages of manufacturing a product or product component alongside purchasing it. When the purchase price is high than what it would cost the manufacturer to prepare it, or when the m

    		•
  • Q : How societys interests can affect

    Normal 0 false false

    		•
  • Q : Rate of inflation Normal 0 false false

    Normal 0 false false

    		•
  • Q : Describe the P-E valuation method

    Describe the P/E valuation method. Under what conditions a stock should be valued by using this method?The P/E ratio denotes how much investors are keen to pay for each dollar of a stock's earnings. A high P/E ratio denotes that investors belie

    		•
  • Q : What are A-pages A-pages : An ordinary

    A-pages: An ordinary reference to the Governor's Budget synopsis. The Budget highlights now contained in the Governor's Budget synopsis were just once contained in front of the Governor's Budget on pages A-1, A-2, and so on, and were,

    		•
  • Q : Influence the economy in short run and

    Normal 0 false false

  • Q : Laffer Curveand its association to

    Normal 0 false false

  • Q : What are the Changes in Authorized

    Changes in Authorized Positions (“Schedule 2”): This is a schedule in the Governor’s Budget which reflects staffing changes made following to the adoption of the present year budget and enacted legislation. This planned document modi

    		•
  • Q : Types of legal barriers to market entry

    Types of legal barriers to market entry exist: Kinds of legal barriers which make that difficult for the newer drug in the generic form towards entering market have been lack of the rigorous assessment about the patentability needs; thirty mouth stay

    		•