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An investor in a local company receives a copy of the company's financial statements. The information clearly shows the company earned a profit in the

An investor in a local company receives a copy of the company's financial statements. The information clearly shows the company earned a profit in the last period, but the accompanying letter states investors will not receive a dividend at this time. Rather, the company intends to reinvest the money. The investor is confused about why he is not receiving a dividend. What concept does the investor need to understand?

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