What is Cost of retained earnings?
Submitted by: AdministratorCost of retained earnings have the opportunity cost associated with it and it can be computed as well without any difficulty. The opportunity cost in this is same as the rate of return of the shareholders which determine the cut off point for the deals. It is also the rate of return which shareholders can get by investing after tax dividends in alternative opportunity.
Submitted by: Administrator
Submitted by: Administrator
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