Why are retained earnings not a free source of finance?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

See More Books

Question Posted: Mar 05, 2024 06:38 AM

See More Questions

If retained earnings are not a free source of finance, why are they nonetheless such a popular source of finance?
Are retained earnings a free source of finance for the business? Explain.
Trexon Ltd. is a junior oil and gas exploration business that has most of its operations in Alberta. Recently, the business acquired rights to explore for oil and gas in the Gulf of Mexico. Trexon...
Abhishek Ltd. is manufacturing cotton clothes. It has been consistently earning good profits for many years. This year too, it has been able to generate enough profits. There is availability of...
Why is the role of entrepreneurs much more important in the new growth theory than in the traditional economic growth model?
Which of these interfaces handles sequences? (a) Set (b) List (c) Comparator (d) Collection
(b) What steps should have been taken during the planning of this experiment to ensure that treatment effects are not confounded with any other trends?
Information from Greg Companys balance sheet follows: Current assets: Cash ....................$ 2,100,000 Marketable securities ............. 7,200,000 Accounts receivable ............... 50,500,000...
Remington Aeronautics LTD is a British aeronautics company that designs and manufactures electronic control systems for commercial airlines. The vast majority of all commercial aircraft are...
State Banks balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions. a. What is State Banks duration gap? b. Use these duration values to...
Most businesses, particularly larger ones, have outstanding claims (financial obligations) of a wide variety of types from a wide variety of claimants at any given moment. Why is there this diversity?
Many businesses issue loan notes, which carry the right for holders to convert them into ordinary shares in the same business at a later date. Why might a business choose to issue convertible loan...
In its first year of operations, Anya Company recognized $30,000 in service revenue, $4,800 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from...
Over the past 40 years, union membership has declined, and it continues to do so. Instead, many companies are turning to alternative dispute resolution. We know one of the best union avoidance...
Article "A Leader's Journey" by Pamela Kruger Photographs by Nigel Dickson. For this discussion, let's try and unpack the key factors that led to his transformation. 1. What are your key takeaways...
Describe the collaborative roles of the team leader and the team coach in helping a group of people come together to form a team. Recommend strategies for Alex as team leader to use in helping to...
a. Complete the table with all marginal totals and cell counts. b. Calculate the following probabilities. i. For a male to be a Republican. ii. For a voter to be female. iii. For a voter to be either...
1. Will the Coronavirus Pandemic Make Working from Home the New Normal?" Address the following below. Define the problem described in this case. What are the management, organization, and technology...
Using the data in the Excel file Student Grades, which represent exam scores in one section of a large statistics course, test the hypothesis that the variance in grades is the same for both tests.
Draw the appropriate control flow graph of the given pseudocode.Make sure to only use one number for blocks of code which are all sequential and when the first line is executed, all of those lines...
Provide reasons why a business may decide to (a) lease rather than buy an asset which is to be held for long-term use. (b) use retained earnings to finance growth rather than issue new shares. (c)...
Provide reasons why a business may decide to (a) lease rather than buy an asset which is to be held for long-term use. (b) use retained earnings to finance growth rather than issue new shares. (c)...
Devonian plc has the following equity as at 30 November Year 4: ......................................................................m Ordinary shares 25p fully paid ..............50.0 General...
Kenneth lived in his home for the entire year except for when he rented his home (near a very nice ski resort) to a married couple for 14 days in December. The couple paid Kenneth $14,000 in rent for...
On December 31, 2021, Shack Store Inc had 143 million shares outstanding, which traded for $643.29 per share. On January 02, 2022, the CEO announced a 20-for-1 stock split. Every shareholder would...
o1s= secom o1s= secom

Why are retained earnings not a free source of finance?

Question:

Step by Step Answer:

If profits are paid out to shareholders as a dividend the ...View the full answer

Business Finance

Students also viewed these Business questions