Why do retained earnings not grow at the same rate as sales? In answering this question, think
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Why do retained earnings not grow at the same rate as sales? In answering this question, think about a firm whose sales are not growing (g = 0%), but that is profitable and does not pay out all of its earnings as dividends.
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Related Book For 
Fundamentals Of Financial Management Concise
ISBN: 9780324258721
4th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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