Please explain

LO4- . . Understand how Retained Earnings is generated, how it is used and what restrictions might be Be able to identify subtotals of the equity section and relationships between items (see illustration 11.18 from text) Know the metrics/ratios tracked surrounding the Equity accounts (be able to interpret results)- Payout ratio Return on Common Stockholders' Equity Advantanges/Disadvantages of issuing debt vs equity O O . LO4- . . Understand how Retained Earnings is generated, how it is used and what restrictions might be Be able to identify subtotals of the equity section and relationships between items (see illustration 11.18 from text) Know the metrics/ratios tracked surrounding the Equity accounts (be able to interpret results)- Payout ratio Return on Common Stockholders' Equity Advantanges/Disadvantages of issuing debt vs equity O O