About retained earnings, Which of the following is true

About retained earnings

Assignment Help Business Economics

Reference no: EM13819076

Which of the following is true about retained earnings?

A) they are considered to cost the same as equity capital when used to finance a project

B) they are considered to be essentially free to the company for investment in projects since it is using its own money

C) retained earnings are always paid out in dividends to stockholders.

D) retained earnings are cheaper to use for funding projects than bonds but more expensive than equity.

Reference no: EM13819076

Questions Cloud

Investors is best answered from the income statement : Which of the following questions from investors is best answered from the Income Statement?

Project cash flow statement will show small gains tax credit : At the end of a projects life, an asset will be disposed. The projects cash flow statement will show a small gains tax credit (positive cash flow). Which of these statements must be true?

Net worth on a banks balance sheet is : Net Worth on a bank's balance sheet is

Stores need not accept your check but must accept currency : Stores need not accept your check but must accept currency because

About retained earnings : Which of the following is true about retained earnings?

Capital stock is fixed-average physical product of labor : Suppose that in the short run the capital stock is fixed at 100, write down an expression for. The total physical product of labor. The average physical product of labor.

Double-declining-balance method : A company purchased a POS cash register on January 1 for $5,200. This register has a useful life of 10 years and a salvage value of $500. What would be the depreciation expense for the second-year of its useful life using the double-declining-bala..

The binomial model a useful technique : Why is the binomial model a useful technique for approximating options prices from the Black- Scholes(-Merton) model? Describe some applications and uses of this model. Does put-call parity always hold in financial markets? If not, give a few reasons..

Outline a financial plan for your small business : Outline a financial plan for your small business. "Island Auto Detailing" Develop a guerrilla marketing strategy for your small business. Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning. Out..

User Account

All Pages