q problems in computations of cost of retaining, Financial Management

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q problems in computations of cost of retaining

Q. Problems in computations of cost of retaining earning?

Problems in computations of cost of retaining earning: it is sometimes argued that retained earning do not involve any costs. But in reality, it is an opportunity cost of dividend foregone by its shareholders is a very difficult task because there are many factors which influence their valuation about the firm.

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