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.
How will the system accommodate change?
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