Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must a) provide a higher rate of return

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must a) provide a higher rate of return than the stockholders can achieve after paying taxes on the distributed dividends. b) yield a return equal to or greater than the marginal cost of capital. d) have an internal rate of return greater than the corporate growth rate of dividends.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Estimating Economic Models

Authors: Atsushi Maki

1st Edition

0415589878, 978-0415589871

More Books

Students also viewed these Finance questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago