Why do retained earnings have a cost

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Reference no: EM132001521

Question: How might the size of the NPV of a project or the magnitude of a project's IRR be interpreted as an offset to a project's risk? Find a real-world example of a situation in which a firm had a real option for a project, and discuss the implications of this for the NPV of the project. Discuss the concept of a firm's "target" capital structure. How might this be determined? Why do retained earnings have a cost? What is the appropriate tax rate to use for a firm? How would this be determined?

Reference no: EM132001521

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