Marginal principle of retained earnings means

Reference no: EM131794175

Question: The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:

- yield a return equal to or greater than the marginal cost of capital.

- have an internal rate of return greater than the corporate growth rate of dividends.

- provide enough return to pay the corporation's marginal tax rate.

- provide a higher rate of return than the stockholders can achieve after paying taxes on the distributed dividends.

Reference no: EM131794175

Questions Cloud

Calculate the non-operating terminal year cash flow : The Marchal Company is evaluating the proposed acquisition of a new machine. The machine's base price is $240,000, and it would cost another $15,000 to modify.

Refer to the hr reports in the inquirer : Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Baldwin has obtained a productivity index of 109.4%.

Cultural diversity in workplace affects which organizational : Cultural diversity in the workplace affects which organizational areas?

Prepare the journal entries for cheyenne : full payment is made to Cheyenne. Prepare the journal entries for Cheyenne in 2017 related to this arrangement

Marginal principle of retained earnings means : The marginal principle of retained earnings means that each potential project to be financed by retained earnings must.

Write a function to find reachability matrix of a digraph : Write a function to find the reachability matrix of a digraph using Wars hall's algorithm.

Calculate monthly paymentsfor the loan described : Calculate monthly paymentsfor the loan described in this worksheet. Omit the optional arguments. Use a negative value for thePvargument.

Discuss what is the journal entry to record the tax accrual : What is the financial tax expense. What is tax liability. What is the journal entry to record the tax accrual

Find the form of the reachability matrix : An alternative to the method of Exercise for determining reachability is to use "Boolean multiplication and addition," that is, bitwise and (&) and bitwise.

User Account

All Pages